Bitcoin critics say that the BTC price will reach $ 0 this time, but these 3 signals indicate otherwise
In the same way as a clockwork, the beginning of a crypto bear market has brought out the “Bitcoin is dead” crowd that happily proclaims the end of the largest cryptocurrency by market value.
If #Bitcoin may collapse by 70% from $ 69,000 to below $ 21,000, it may just as well fall another 70% down to $ 6,000. Given the exaggerated influence #krypto, imagine the forced sale that would take place during a sale of this magnitude. $ 3,000 is a more likely price target.
– Peter Schiff (@PeterSchiff) June 14, 2022
The last few months have been really painful for investors, and the price of Bitcoin (BTC) has fallen to a new low in 2022 of 17,600 dollars, but the recent calls for the asset’s demise are likely to suffer the same fate as the previous 452 predictions called for its death.
Resolute Bitcoiners have a bag full of tricks and chain measurements they use to find out when BTC is in a buying zone, and now it’s time to take a closer look at them. Let’s see what time-tested calculations say about Bitcoin’s current price action and whether the 2021 beef market was BTC’s last hurray.
Some traders always buy refunds of the 200-week moving average
One calculation that has historically served as a solid support level for Bitcoin is its 200-week moving average (MA), as shown in the following chart posted by market analyst Rekt Capital.
As shown in the area highlighted by the green circles, the lows established in previous bear markets have occurred in areas close to 200-MA, which has effectively performed as a major level of support.
Most of the time, the BTC price has tended to go below this metric for a short while and then slowly work its way back above 200-MA to start a new trend.
At the moment, the BTC price is trading directly on its 200-week MA after a short decline below the metric during the sale on 14 June. Although a decline is possible, history suggests that the price will not fall too far below this level for an extended period.
Perennial price supports should hold
Along with the support provided by the 200-week MA, there are also several notable price levels from Bitcoin’s past that should now serve as support if the price continues to slide down.
The last time the price of BTC was traded below $ 24,000 was in December 2020, when $ 21,900 served as a support level that Bitcoin jumped off before the run-up to $ 41,000.
Should support of $ 20,000 not hold, the next levels of support are found close to $ 19,900 and $ 16,500, which shown on the diagram above.
Related: ‘It is too early to say that the Bitcoin price has regained support for important bear markets – Analysis
MVRV indicates the time to start accumulating
A recent calculation that suggests that BTC may be approaching an optimal accumulation phase is the market value-to-realized-value ratio (MVRV), which is currently 0.969.
As shown in the chart above, the MVRV score for Bitcoin has spent most of its time over the last four years above a value of 1, except for two short periods that coincided with bearish market conditions.
The short decline that took place in March 2020 saw the MVRV score reach a low of 0.85 and stay below 1 for a period of approximately seven days, while the bear market from 2018 to 2019 saw the metric reach a low of 0.6992 and spent a total of 133 days below a value of 1.
Although the data do not deny that BTC can see further price declines, it also indicates that the worst withdrawal has already taken place, and that it is unlikely that the current extreme lows will persist in the long run.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trade involves risk, you should conduct your own research when making a decision.
