Bitcoin Critics Say BTC Price Will Hit $ 0 This Time, But These 3 Indicators Suggest Otherwise

Like the work of the clock, the beginning of the cryptocurrency bear market has followed those who say bitcoin is dead and who have happily announced the end of the largest cryptocurrency through market capitalization.

Yew #Bitcoin 70% drop from $ 69,000 to under $ 21,000, it can just as easily drop another 70% down to $ 6,000. Due to the excessive leverage i #crypto, imagine the mandatory sales that would occur during sales of this size. $ 3,000 is likely to be the price target.

– Peter Schiff (@PeterSchiff) June 14, 2022

If #Bitcoin can crash 70% from $ 69,000 to under $ 21,000, it could also crash another 70% to $ 6,000. Given the excessive leverage of #crypto, imagine the forced sale that would occur during a sale of this magnitude. $ 3,000 is likely to be the price target.
– Peter Schiff (@PeterSchiff) June 14, 2022

The last few months have indeed been a painful one for investors, and the price of bitcoin (BTC) has fallen to a lower level than in 2022, but the latest fate is likely to be the same as the latest calls for the passing of the asset and the previous 452. prophecy calling for his death.

Solutions bitcoiners have a bag full of tips and indicators on a chain that they use to determine when BTC is in a buying zone, and it’s time to take a closer look. We’ll see what time-tested metrics say about bitcoin’s current price volatility and whether the 2021 bull market was bitcoin’s last hurray.

Some traders are still buying bounces off the 200 week moving average

One indicator that has historically worked as a strong level of support for bitcoin is its 200-week moving average (MA), as seen in the following chart post by market analyst Rekt Capital.

As can be seen in the area highlighted by the green circles, the previously established lows in bear markets occurred in areas near the 200-MA, which effectively acted as a major level of support.

Most of the time, BTC price tended to move briefly below this indicator and then slowly move back above the 200-MA to start a new uptrend.

Currently, the price of BTC trading just at its 200 week MA has fallen briefly below the indicator during the June 14 sale. While a downward movement is possible, history suggests that the price will not fall too far below this level for a long time.

Perennial price supports should be in place

Along with the support provided by the 200-week MA, bitcoin has some significant price levels in the past and should now act as support if the price continues to fall.

The last time the BTC price traded below $ 24,000 was in December 2020, when $ 21,900 acted as a support level that bitcoin operated before rising to $ 41,000.

If the $ 20,000 support is not maintained, the next support levels are close to $ 19,900 and $ 16,500, as show the graph above.

Read also: Too early to say Bitcoin price succeeds in Restoring Key Bear Market Support – Analysis

The MVRV says it’s time to start accumulating

A final metric that suggests that BTC may be approaching an optimal accumulation stage is the market – to – value – to – realization (MVRV) ratio, which is currently at 0.969.

As the chart above shows, bitcoin’s MVRV score has spent most of the last four years above the value of 1, except for two short periods that coincided with bear market conditions.

Due to the brief decline in March 2020, the MVRV score hit a low of 0.85 and remains below 1 for about seven days, and in the bear market from 2018 to 2019 the indicator reached a low of 0.6992 and spent a total of 133 days below the value of 1.

While the data are not contradictory that BTC could see another price fall, it also suggests that the worst of the withdrawal has already occurred and that the extreme lowlands are unlikely to continue in the long run.

The views and opinions expressed herein are those of the author only and do not necessarily reflect the views of Cointelegraph.com. All investments and trades involve risk. You should do your own research before making a decision.