Critics of Bitcoin say that the price of BTC will go to $ 0 this time, but these 3 signals indicate otherwise

Critics of Bitcoin say that the price of BTC will go to $ 0 this time, but these 3 signals indicate otherwise – Mail Bonus

Like clockwork, the beginnings of the cryptocurrency market have highlighted the “Bitcoin is dead” crowd, which is celebrating the end of the largest cryptocurrency with a market value.

The last few months have certainly been painful for investors and the price of Bitcoin (BTC) has fallen to a new low in 2022 to $ 20,100, but most likely the latest call for the death of the asset will suffer the same fate as the previous 452 forecasts. before its death.

Counting Bitcoin death notices. Source: 99Bitcoins

Certain Bitcoiners have a bag full of gimmicks and chain metrics that they use to determine when BTC is in the trading area and now is the time to take a closer look. Let’s see what time-tested metrics say about Bitcoin’s current price action and whether the 2021 bull market was BTC’s last hurray.

Some traders always buy a bounce of the 200-week moving average

One measure that has historically served as solid support for Bitcoin is its 200-week moving average (MA), as shown in the following table. insert by marketing expert Rekt Capital.

BTC / USD against 200-week MA weekly. Source: Twitter

As shown in the area marked by the green circles, the lows reached in previous bear markets have occurred in areas close to 200-MA, which has in fact stood out as a major level of support.

Most often, BTC prices have tended to briefly fall below this measure and then slowly work their way back above 200-MA to start a new rise.

Currently, the BTC price is trading at 200-week MA after briefly dipping below the benchmark at the June 14 sale. Although a reduction is possible, history suggests that the price will not fall too far below this level for a. longer time.

Price support for many years should be maintained

Along with the support from the 200-week MA, there are also some interesting prices from the past Bitcoin that should now act as support if the price continues to fall.

BTC / USDT 1 week chart. Source: TradingView

The last time BTC traded below $ 24,000 was in December 2020, when $ 21,900 acted as a support level that Bitcoin bounced off in the run-up to $ 41,000.

If $ 20,000 is not supported either, the next levels of support are close to $ 19,900 and $ 16,500, respectively. Showed in the table above.

Connected: ‘Too early to say that Bitcoin prices have regained key support in the bear market – Analysis

MVRV indicates the time to start collecting

One final measure that suggests that BTC may be approaching the optimal accumulation phase is the market value-to-redeem-value ratio (MVRV), which currently sits at 0.969.

The ratio of Bitcoin to market value and real value. Source: Glassnode

As shown in the chart above, MVRV scores for Bitcoin have spent the most time over the past four years above value 1, with the exception of two short periods that coincided with bear market conditions.

The short decrease that took place in March 2020 saw the MVRV score go as low as 0.85 and was below 1 for a period of approximately seven days, while in the bear market from 2018 to 2019 the measured value was as low as 0.6992 and spent a total of 133 days below the value 1.

Although the data does not deny that BTC could see further price increases, it also indicates that the worst setbacks have already taken place and that current extremes are unlikely to continue in the long run.

The views and opinions expressed herein are those of the authors only and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading business involves risk, you should conduct your own research when making a decision.