“Bitcoin (BTC) price is going to reach $0 this time” according to these traders, but these 3 sensitive signals the opposite.

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

If #Bitcoin can crash 70% from $69,000 to below $21,000, it might as well fall another 70% to $6,000. Given the excessive leverage of #crypto, imagine the forced selling that would occur during a sell-off of this magnitude. $3,000 is a more likely price target.

The last few months have indeed been painful for investors, and the price of bitcoin (BTC) has fallen to a new 2022 low of $17,600, but the latest calls for the asset to disappear are likely to suffer the same fate. than the previous 452 predictions calling for his death.

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

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

One metric that has historically worked as a strong level of support for bitcoin is its 200-week moving average (MA), as seen in the following chart released 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 near the 200-MA, which effectively acted as a major support level.

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

Right now, the price of BTC is trading near its 200-week MA, after temporarily dipping below the metric during the June 14 sell-off. Although 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 price levels from bitcoin’s past that should now work as support if price continues to slide lower. This may interest you: Ertha’s Metaverse hits a new high of $120,000 thanks to the sale of Rome NFT..

The last time the price of BTC traded below $24,000 was in December 2020, when $21,900 acted as a support level that bitcoin bounced off before surging towards $41,000.

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

See also: Too early to say bitcoin price has regained key bear market support – Analysis

The MVRV indicates that it is time to start accumulating.

A final metric that suggests BTC may be approaching an optimal accumulation phase is the market-to-realized-value ratio (MVRV), which currently sits 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, except for two brief periods that coincided with conditions. bear market.

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

While the data doesn’t deny that BTC could see another price drop, it also risks that the worst of the aftershock has already happened and the current extreme lows are unlikely to persist in the long term.

Thomas Estimbre
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