Key Points
- Bitcoin (BTC) experienced more losses on Monday, 25th June, as market sentiment declined.
- Despite the market downturn, analysts suggest that the crypto bull run is not over yet.
Bitcoin (BTC) recorded additional losses on Monday, 25th June, dropping to $58.6K during intra-day trading as market sentiment fell.
This risk aversion was also notable in US spot BTC ETFs, which marked the 7th day of outflows amounting to $174.45 million on Monday.
Negative Sentiment and BTC Supply Overhang
The negative sentiment has been exacerbated by the imminent BTC supply overhang from Mt. Gox, German authorities, and BTC miners.
During Monday’s sell-off, over 57K BTC, or $3.4 billion worth of the king coin, was offloaded. This has led to questions about the future of the crypto bull run.
As a market leader, BTC’s movements provide a measure of the pace and state of the crypto bull run.
Interestingly, historical analysis of its RSI (Relative Strength Index) suggested more room for a bull run. The RSI monitors buying and selling strength in the market.
Market Cycle Analysis and MVRV Z Score
Another market cycle analyst, Rekt Capital, also downplayed the recent BTC retracement fears. He pointed out that the current pullback is not even an average one in depth or length yet.
Another on-chain data point also suggested the crypto bull run wasn’t over yet.
The Market Value to Realized Value (MVRV) Z score, which measures the BTC market top and bottom from a long-term perspective, was also yet to flash a top signal.
Typically, the market top follows after the metric hits the value above 6 (marked red) or the trending resistance.
That said, the short-term BTC headwinds from the supply overhang linked to Mt. Gox and others could delay a strong uptrend. However, the long-term projection suggested more room for the crypto bull run to extend.
