While Bitcoin struggles to break above $20,000 range, indicators suggest that bottom is in
Most cyclic Bitcoin indicators are hinting at a reversal rally as the asset has finally bottomed out—according to the CEO of CryptoQuant on-chain and market hub. The analyst suggests that opening big shorts on Bitcoin right now is riskier than usual, as most indicators are being suppressed.
The analyst has shown six indicators used by traders and investors to determine the current state of the market and its bounce potential by using on-chain data like realized loss and profit, the MVRV ratio and BTC miners’ positions.
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.
Live Dashboard ?https://t.co/HyTvRA6QrW pic.twitter.com/HYbjliokIq
— Ki Young Ju (@ki_young_ju) June 23, 2022
The first indicator, the ratio between unrealized loss and profit, is used for determining if the whole network is in a state of loss or profit. Whenever indicators show a value above zero, the network can be considered profitable. If the value drops below 0, the network is in a state of loss.
Historically, whenever the Bitcoin network’s NUPL dropped below zero, we saw a rapid bounce of the first cryptocurrency, or at least a short-term consolidation period shortly after. Currently, Bitcoin is on its way to the 2019 low, which became a starting point for the crypto market’s rally in 2021.
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Another notable indicator is the Miner’s Position Index, which reflects the volume of supply concentrated in Bitcoin miners’ hands. Recently, large mining companies and private miners have been actively selling more than 100% of their monthly holdings to cover expenses.
Whenever miners’ selling activity rises on the network, Bitcoin is getting closer to the capitulation point and is no longer facing such large selling pressure on its way up.
At press time, Bitcoin is changing hands at $20,440, with a modest 2.3% price increase in the last 24 hours.
Source: https://u.today/majority-of-bitcoin-indicators-are-saying-bottom-is-in