Bottom of bitcoin is Near

[Maaz sultan 265]

Purchasing the dip turns into a nightmare right away. As the bear market continues as prices for cryptocurrencies drop further. Recent drops, however, indicate that present levels could be a favorable place for traders to enter the market. Is the bottom in? Is a question Coin telegraph sent on Twitter to get the opinion of the community.

 

A market bottom may be approaching, according to a Bitcoin (BTC) on-chain indicator that monitors the share of the total coin supply owned by long-term holders (LTHs) who are losing money.

 

Finding Bitcoin bottom:

About 30% of Bitcoin’s LTHs were experiencing losses as of September 22 as a result of BTC falling from $69,000 in November 2021 to about $19,000 at the time. That is roughly 3% to 5% below the range that typically corresponded with the market bottoms for Bitcoin.

 

For instance, during the COVID-19-led market crisis in March 2020, Bitcoin’s price fell below $4,000 at a time when LTH’s holdings of the cryptocurrency rose to 35% of the total supply, as illustrated below.In a similar vein, Bitcoin’s December 2018 bottom, which was at $3,200, coincided with the LTH loss metric exceeding 32%. In both instances, BTC/USD then started a protracted bullish cycle.

 

As a result, during a normal bear market, the proportion of LTHs in loss tends to peak between 30% and 40%. In other words, there is still potential for Bitcoin’s price to fall, probably into the $10,000–$14,000 region, before “LTHs in loss” hit the historic low.

 

As shown below, it seems that these investors accumulate and hold during market downturns and disperse during BTC price uptrend. This is supported by the LTH supply metric, which tracks the BTC supply held by long-term holders.

 

A report said “Throughout the bear, persistent price depreciation leads the STH Realized Price to fall below the LTH Realized… This is synonymous with a capitulation, where coins purchased near the cycle top are sold and change hands at much lower prices,”

 

A bottom in the price of bitcoin is also suggested by other indications.

The MVRV ratio essentially measures the difference between market capitalization and realized capitalization to determine whether prices are over or below “fair value” and to evaluate market profitability.

 

The data by Glassnode comes after BTC has fluctuated over the last three months between a high of almost $25,000 and a low of about $17,500, spending a good deal of that time around a price of $20,000.

 

A price floor was predicted by other calculations to fall within this region as well. Late last month, Bitcoin hash ribbons, another important market statistic used by traders, flashed a buy signal to suggest a potential floor price, according to CNBC.