Bitcoin indicator that nailed all bottoms predicts $15.6K BTC price floor

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Bitcoin (BTC) needs to dip before setting a macro bottom, which is one of the most accurate market indicators.

Data from sources including on-chain analytics firm Glassnode shows Bitcoin’s MVRV-Z score roughly – but not completely – suggesting a price reversal.

MVRV-Z scores inches toward the bottom of the macro
Amid the ongoing debate over whether or when BTC/USD will break the current lows of $17,600, the new numbers suggest that the market could easily drop further.

As noted by Filbfilb, co-founder of trading group Decentrader, the MVRV-Z score is now in its classic green, but has not yet reached the point that has accompanied price bottoms in the past.

MVRV-Z measures how high or low the spot price of bitcoin is relative to what is referred to as the “fair value.”

It uses market cap and realized price data along with standard deviation to create what turns out to be one of the most efficient Bitcoin up and down prediction tools.

MVRV-Z has spotted every BTC/USD macro top and bottom in its history, and has done so precisely for two weeks, data source LookIntoBitcoin notes.

The metric has gone below its green a few times, most recently in March 2020, but more negative pressure would result in a repeat performance.

“This graph *is* for me,” Filbfilb commented on the latest reading.

“We are usually at the bottom when MC

Bitcoin MVRV-Z Score Chart. Source: Glassnode
Bottom zone gains of $16,000
The amount of $15,600 will match various current expectations about where Bitcoin will fall.

Related: Bitcoin Will See a “Long Bear Market” Says a Trader With BTC Price Stuck at $19,000

In an update to Twitter followers over the weekend, meanwhile, the popular CryptoBullet account included this area as one of several important support areas to watch.

She confirmed that $16,000 is also the average deviation from Bitcoin’s 50-month moving average.

Bitcoin’s Relative Strength Index, or RSI, is already at all-time lows, another indication of the oversold nature of a market now around $20,000 below the peak of the previous halving cycle.

The opinions and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should do your own research when making a decision.

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