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Bitcoin reviewers say this time BTC is going for $ 0, but these 3 codes suggest otherwise

Like clockwork, the start of the crypto bear market has brought out the “Bitcoin is dead” group, who happily announce the end of the biggest cryptocurrency through market capitalization.

The past few months have been really painful for investors and the price of Bitcoin (BTC) has plummeted to a low of $ 17,600 in the new 2022, but recent calls for asset mortality are likely to suffer the same fate as the previous 452 forecasts. To its death.

Bitcoin execution count. Source: 99Bitcoins

Resolution Bitcoiners have a bag full of tricks and on-chain metrics that they use to determine when BTC is in the buying zone and now it’s time to take a closer look. Let’s see what the time-tested metrics say about Bitcoin’s current pricing and whether the bull market for 2021 is the last hurra of BTC.

Some traders always buy 200-week moving average bounces

One metric that has historically served as solid support for bitcoin is its 200-week moving average (MA) as shown in the chart below Post By market analyst Rect Capital.

200-week MA weekly chart against BTC / USD. Source: Twitter

As shown in the area highlighted by green zones, lows established in previous bear markets have occurred in areas close to 200-MA, effectively serving as a major support level.

Most of the time, the BTC price tends to wiggle briefly below this metric and then slowly return above 200-MA to start a new uptrend.

Currently, the BTC is trading correctly in its 200-week MA after the price sank below the metric briefly during the June 14 sell-off. History suggests that even if lower moving is possible, the price will not fall below this level. Extended period.

Must have multi-year pricing support

With the support provided by the 200-week MA, there are several significant price levels behind Bitcoin that will act as support if prices continue to decline.

BTC / USDT 1-week chart. Source: Trading View

The last time BTC traded below $ 24,000 in December 2020, Bitcoin bounced back before its run-up to $ 41,000, when it supported the $ 21,900 support level.

Failing to hold the $ 20,000 support, the next support steps are likely to be closer to $ 19,900 and $ 16,500 Are shown In the chart above.

Related: ‘It’s too early to say that bitcoin prices have regained major bear market support – Analysis

Specifies the time at which MVRV starts storage

One final metric that indicates that BTC is approaching an optimal accrual level is the market-to-value-to-realization ratio (MVRV), which is currently at 0.969.

Bitcoin market value and realized value ratio. Source: Glassnode

As shown in the chart above, the MVRV score for Bitcoin has exceeded the value of 1 over the last four years, excluding two brief periods, which is consistent with bear market conditions.

The brief downturn in March 2020 saw the MVRV score below 0.85 and a 1-day low of roughly seven days, but the bear market for 2018 to 2019 was down 0.6992 metric and total spending was 133 days below the value of 1.

While the data does not rule out that BTC may see further price declines, it suggests that the worst of the pullback is already in place, and that the current severe lows are unlikely to last long.

The opinions and opinions expressed herein are those of the authors and do not necessarily reflect the opinions of Cointelegraph.com. Every investment and business move involves risk, you must conduct your own research when making a decision.