Despite the usual turbulence in the cryptocurrency market, data continues to pour in, suggesting that prices will soon rebound. An analyst now provides evidence that Bitcoin has fallen into a value zone that has never happened in the past eleven years.

If right, there is now a short window period that puts the price of Bitcoin at a significant discount.

Analyst Philip Swift has created a chart that analyzes the current market cap and the movement of a particular bitcoin relative to its price at the time of purchase. It's called the MVRV Z-score, which indicates that traders are currently selling Bitcoin at a deep discount.

Philip Swift tweeted on Twitter: From the MVRV Z data, Bitcoin's market value has now fallen below its upper cost limit (the cost basis for buying Bitcoin), and the Z score has now fallen into the green zone. Historically, such periods are rare and attractive for accumulating bitcoin.

In short, the price of Bitcoin holders is much lower than usual, and whenever this happens, there will be a substantial price rebound for Bitcoin.

Others have also noted the current trend of holders selling at deep discounts. CoinMetrics.io states that the speed of Bitcoin's loss-making sale has now reached its highest level in eight years.

CoinMetrics official Twitter said that the Bitcoin SOPR fell to 0.843 on March 12, the lowest level since February 2012. SOPR is the ratio of the sold price to the paid price. A SOPR of less than 1 indicates that the investor is selling at a loss.

There are many reasons for such a rapid sell-off. Around the turmoil in the traditional financial sector, many crises have emerged. In addition, many cryptocurrency investors need cash because of the effects of the corona virus, and related work has been suspended around the world.

As a result, they monetized a large amount of Bitcoin (asset bagging). The increase in activity on Localbitcoins.com is further evidence of this demand for fast notes.

Because the virus created a market environment similar to the financial crisis, demand for cash was strong. Although there is no lack of desire to buy cryptocurrencies, fewer people have the capital to invest.

This situation has further created a good opportunity to purchase blockchain assets at a discounted price.

In this particular case, all commodity markets are likely to experience huge price fluctuations in the coming days and weeks. In the cryptocurrency space, there are no shortage of whales that make use of volatility to make a profit. But at the same time, cautious and stable buying is still the best strategy for most investors.

It is worth noting that the development and adoption of blockchain is still strong, and despite the market collapse, interest in this revolutionary technology has not diminished. Therefore, for those who are still reluctant to invest in the cryptocurrency field, it may be a good start time now.

Your friend Doing, your blockchain information assistant！

Just like it and go!

Cheers!