One of the market’s most reliable indications says that Bitcoin (BTC) has to fall lower before putting in a macro bottom.
Bitcoin’s MVRV-Z Score is nearly, but not quite, suggesting a price reversal, according to data from many sources, including on-chain analytics company Glassnode.
New data suggests that the market has room to fall much more, despite the continuing discussion over whether or not BTC/USD will go below its current macro low of $17,600.
MVRV-Z is presently in its traditional green zone but isn’t at the point which has previously accompanied price bottoms, as highlighted by Filbfilb, co-founder of trading package DecenTrader.
Measurement of Bitcoin’s spot price in relation to its “fair worth” is measured by MVRV-Z.
One of the most effective Bitcoin peak and bottom prediction methods is based on market capitalization and realized price data, as well as standard deviation.
LookIntoBitcoin points out that MVRV-Z has nailed every macro peak and bottom on BTC/USD in its history with a two-week accuracy.
In March 2020, the measure fell below the green zone for the first time since the metric was first introduced in 2012.
“For me, this chart is the one.” On the most recent readings, Filbflabb said:
At the present price of $15.6k, we usually hit our bottom when MC reaches a 30 percent gain on its cap.” In good macro times, anything above here is a danger of things being different this time, in my opinion.”
A price of $15,600 is consistent with a number of previous forecasts on when Bitcoin would reach its bottom.
According to the renowned Twitter account CryptoBullet, this location was one of many critical areas to keep an eye on during the weekend’s upgrade.
The average departure from Bitcoin’s 50-month moving average is $16,000, they revealed.
In addition to the fact that Bitcoin’s RSI (relative strength indicator) is already at its lowest point ever, this is another sign that the market is oversold.
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