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Bitcoin (BTC), the <a href="https://news.todayq.com/bitcoin-halving-2024-decoding-its-impact-on-btc-price/" target="_blank" rel="noreferrer noopener">biggest crypto asset</a> witnessed a broad correction on Monday as its price dropped by almost 8% in the last 24 hours. BTC price drop triggered a major sell-off in the market as cryptos like Ethereum (ETH) and Ripple’s XRP price dropped by over 4%. However, experts suggest that this might not be the end market’s upward run as investors are still looking to buy amid the recent decline. Bitcoin price rebound expected 
As per CryptoQuant, the recent plunge of 8% in Bitcoin price might trigger panic among novice investors. However, if we consider the upcoming decision of the US SEC to <a href="https://news.todayq.com/bitcoin-etf-approval-imminent-as-sec-nears-decision/" target="_blank" rel="noreferrer noopener">approve a Bitcoin Spot ETF</a> in January 2024, there is substantial demand in the market to buy Bitcoin from a fundamental perspective. 
In order to assess whether Bitcoin is in an overheating zone or not, the expert examined the short-term investor inflows and futures market indicators. 
If we look at the ‘short-term investor inflows’ through the Realized Cap – UTXO Age Bands (%), 1D to 1W cohort, he highlighted that historical corrections often happen when these numbers hit 8%. However, the current ‘Short Term SOPR’ metric stands at 5.65%. This indicates an increase in inflows from new investors but not yet reaching overheating levels. Source: Cryptoquant Buying window opens for BTC 
As we dig in, the ‘Funding Rate’ analyzed to identify overheating in the futures market. However, historical overheated markets often had a BTC funding rate of around 0.05% but as of now this rate currently stands at 0.02%. This implies that the market is not in the overheating zone. 
The crypto expert mentioned that Considering these indicators, it is believed that the market is not yet overheated. A rebound is anticipated after this correction.&nbsp; 
An on-chain data indicator that suggests a good time to buy Bitcoin in this situation is the ‘short-term SPOR’ indicator. This indicator signals a favorable time to buy when short-term investors are selling Bitcoin at a loss. When the indicator shows a value lower than 1, it is considered a signal for an aggressive long view in the market. 
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Experts suggest Good Time to buy Bitcoin amid fresh price dip

Todayq News

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