Most Bitcoin Indicators Indicate That The Bottom Is In

According to the CEO of CryptoQuant, an on-chain and market hub, the majority of cyclic indications for Bitcoin point to a reverse rally as the commodity has finally bottomed out.

Since most indications are being suppressed, the analyst contends that taking large short positions on BTC at this time is riskier than usual.

By examining on-chain data such as realized loss and profit, the MVRV ratio, and BTC miners’ holdings, the analyst has demonstrated six indications that are utilized by traders and investors to assess the current status of the market and its likelihood of rebounding.

Most #Bitcoin cyclic indicators are saying the bottom.

Not sure how long it would take for consolidation in this range tho. Opening a big short position here sounds not a good idea unless you think that $BTC is going to zero.

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— Ki Young Ju (@ki_young_ju) June 23, 2022

To ascertain if the entire network is experiencing losses or gains, the first indicator, the ratio between unrealized loss and profit, is employed. When indications display a value greater than zero, the network is said to be profitable. The network is in a condition of loss if the value falls below 0.

In the past, if the first cryptocurrency experienced a rapid rebound or at least a brief consolidation period, the Bitcoin network’s NUPL fell below zero.

Bitcoin is currently headed toward the 2019 low

Bitcoin served as the foundation for the 2021 rally in the cryptocurrency market.

The Miner’s Position Index, which shows the amount of supply concentrated in the hands of Bitcoin miners, is another noteworthy indicator. Large mining firms and independent miners have recently been actively selling more than all of their monthly holdings to finance costs.

BTC is moving closer to the capitulation point and is no longer under as much selling pressure on its way up whenever the network’s selling activity among miners increases.

At press time, BTC is changing hands at $20,594, with a modest 1.76% price increase in the last 24 hours.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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