It’s just a couple of simple moving averages (SMAs) that Bitcoin (BTC) bulls price may just need to see if this halving cycle has reached its bottom.
Now the Investor Tool indicator has made an entry into the “buy the drop” area, according to the Twitter thread posted by Checkmate, analyst at Glassnode on June 2.
Bitcoin Metric Enters Generational Zone
The Investor Tool is a basic but useful BTC price indicator that shows the possibility for “outsized” gains for traders.
Its the creation by Philip Swift, the founder of LookIntoBitcoin, with the goal of determining whether BTC/USD was likely overbought or oversold.
The two-year SMA and its 5x multiple are in use for this statistic. The two lines are against spot price, and they have a history of catching both generational peaks and bottoms.
BTC/USD has now fallen below the two-year SMA for the first time since March 2020. This line was stepped out about one week before the Terra LUNA, now known as Luna Classic (LUNC), controversy brought Bitcoin to ten-month lows.
Checkmate remarked, “Bitcoin Simple Moving Averages are edge while moving negative markets,” adding that it has “reached the generational zone.”
Th Bitcoin bulls are still not out of the range of $30,000. Yet the Investor Tool’s finds a support line that is only now emerging among experts.
Bitcoin Price To Bottom $25k, Predicts Hayes
Also this week, Arthur Hayes, the former CEO of BitMEX, argued that May’s Terra aimed rise to $23,800 would really be a long-term BTC price floor.
There are several forecasts that Bitcoin price will drop to as low as $14,000. But still historical trends may help to keep Bitcoin at or near current values.
Also the Terra incident, in which the Luna Foundation Guard (LFG) liquidated 80,000 BTC, Hayes argued, may have solidified support.
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Source: https://coinpedia.org/bitcoin/bitcoins-metric-at-generational-zone-what-does-this-indicate-for-bitcoin-price/