Bitcoin Could Rebound As ‘Paper Hands’ Investors Flee, Analysts Say

Bitcoin has experienced a 22% drop from its March peak, with on-chain intelligence firm Glassnode suggesting the cryptocurrency might be forming a local bottom. Investors in a euphoric state typically signal an impending correction, and the recent crash to $57,000 aligns with this pattern. Glassnode's analysis indicates that a rebound could occur if short-term investors start realizing losses, a sign that often precedes price recoveries. The market's current state within a favorable market-value-to-realized-value (MVRV) ratio also supports potential recovery, though a further drop could lead to panic selling.