“This time the price of Bitcoin (BTC) will reach $ 0”, according to these traders, but these 3 signals suggest otherwise.

Like a clockwork, the start of a bear market crypto-currencies brought out the “Bitcoin is dead” crowd by happily heralding the end of the largest cryptocurrency by market cap.

If #Bitcoin can drop 70% from $ 69,000 to less than $ 21,000, it could also drop another 70% to $ 6,000. Given the excessive leverage of #crypto, imagine the forced sell that would occur during a sell-off of this magnitude. $ 3,000 is a more likely price target.

The past few months have been truly painful for investors and the price of bitcoin (BTC) has dropped to a new 2022 low of $ 17,600, but the latest claims for the asset’s disappearance could suffer the same fate as the previous 452 predictions. for his death.

Fixed bitcoiners have a bag full of tricks and chain metrics they use to determine when BTC is in a buying zone, and now it’s time to take a closer look. Let’s see what the proven metrics say about bitcoin’s current price action and whether the 2021 bull market was BTC’s last hurray.

Some traders are still buying bounces off the 200-week moving average.

One metric that has historically served as a strong support level for bitcoin is its 200-week moving average (MA), as seen in the chart below published by market analyst Rekt Capital. See the article: Coinbase informs some Russian users that their accounts may be blocked..

As seen in the area highlighted by the green circles, the lows set in previous bear markets have been in areas close to the 200-MA, which effectively acted as an important support level.

Most of the time, the price of BTC tended to move briefly below this metric and then slowly climb back above the 200-MA to initiate a new uptrend.

Right now, BTC’s price is close to the 200-week moving average, after briefly dipping below the metric during the June 14 sell-off. Although a downward movement is possible, history suggests that the price will not fall too far below this level for an extended period.

Multi-year price support must be maintained

In addition to the support provided by the 200-week MA, there are also several notable past price levels of bitcoin that should now function as support if the price continues to fall. This might interest you: Ertha’s Metaverse hits a new high of $ 120,000 thanks to the sale of Rome NFT..

The last time BTC’s price traded below $ 24,000 was in December 2020, when $ 21,900 acted as a support level that bitcoin bounced off before climbing to $ 41,000.

If the support at $ 20,000 does not hold, the next support levels are near $ 19,900 and $ 16,500, as shown in the chart above.

See also: Too early to say bitcoin price has recovered key bear market support – analysis

The MVRV indicates that it is time to start accumulating.

A final metric that suggests that BTC may be approaching an optimal accumulation phase is the Market-to-Earned Value (MVRV) ratio, which currently stands at 0.969. Read also: Vitalik Buterin donates 1,500 ETH for Ukraine’s defense efforts.

As the chart above shows, bitcoin’s MVRV score has spent most of the past four years above a value of 1, with the exception of two short periods that coincided with bear market conditions.

The brief decline in March 2020 saw the MVRV score hit a low of 0.85 and remain below 1 for a period of around seven days, while the bear market from 2018 to 2019 saw the metric hit a low of 0.6992 and spend a total of 133 days below a value of 1.

While the data does not deny that BTC may see another price drop, it also suggests that the worst of the pullback has already happened and that the current extreme lows are unlikely to persist in the long term.

Tommaso Estimbre
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