- Analysts have predicted a market bottom underway.
- The cryptocurrency market values have declined recently.
- After these periods and the dust settles, the market tends to recover.
Investors have recently bet that the recent market turmoil would get even worse. Another crazy day saw a steep decline in cryptocurrency values, prompting numerous analysts to forecast a quick market bottom. Notably, the largest cryptocurrency, Bitcoin, has decreased by 1%, while the second-largest cryptocurrency is down by 0.67 %.
This is also true for the other top-tier cryptocurrency pairs, including BNB, XRP, and DOGE. Crypto specialists have predicted an impending market bottom. This would allegedly persist for a considerable amount of time as a result of the industry’s agony.
For instance, Cryptoquant, a data analytics company, emphasized particular charting periods. During these times, a smaller proportion of the supply is in profit while the greater one is in losses. Which are:
- Aug 2014 – Oct 2015, a 14-month period
- Nov 2018 – Mar 2019, 5-month period
- Mar 2020 – Apr 2020, 1-month period
- May 2022 – Current, 7-month period and ongoing
The analyst asserts that both the proportion of supply in profit and losses reach a threshold at which they coincide. This is true when combining the two measures shown below in the yellow box.
Periods like this have traditionally demonstrated that Bitcoin’s price is at an alluring level. Below is an additional chat looking at realized price and the MVRV (Market Value to Realised Value).
Currently, the MVRV has been quite low and has less than a 1:1 ratio. This, according to Cryptoquant reveals that the current price is 18% less than the average market-bought price.
However, these charts do not indicate that BTC’s price cannot drop. Instead, it shows a period of time where Bitcoin’s price historically has seen its market bottoms.
Recently, a lot has happened in the crypto market as well as traditional markets and economies. But, normally after these periods and the dust settles, the market tends to recover.
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