Bitcoin (BTC) support at the $ 30,000 level has been relatively resilient in wealth over the past two weeks, with consolidation signs now appearing at many top 100 signals after prices plummeted from lows. recently.
During periods of high volatility and liquidation, it is difficult to take a contrarian view and traders One might think of taking a step back from the noise and negative flow of news to focus on their core beliefs and why they first invested in bitcoin.
Some data points suggest that bitcoin may be close to bottom and should be followed by a long period of consolidation. Let’s look at what the experts are saying.
Bitcoin may have already suffered “ maximum loss »
Mention “Root”, a fake analyst whose bitcoin has realized the peak of losses tweeted the following chart and states that losses have been incurred “ achieve market peaks “.
While bear markets have seen a higher level of realized losses than current ones, they also suggest that the pain may start to get worse soon, allowing bitcoin to start a slow path the recovery.
Analysts also pointed out ” RSI bitcoin is now entering a period previously historically overstated for long-term investors “.
RSI of the BTC / USD pair. Source: TwitterAccording to Rekt Capital,
“Previous reversals from this zone include January 2015, December 2018 and March 2020. »
Strong hands stand
Jurrien Timmer, global director of macroeconomics at Fidelity, provided additional blockchain evidence that bitcoin could soon see a resurgence. According to Bitcoin Idle Flow, an indicator that shows the dormancy flow for bitcoin to “ schematically, a measure of strong hands against weak hands “.
Bitcoin idle stream. Source: TwitterTimmer said:
“Glassnode entity adjusted idle flows are now at their lowest level since the lows in 2014 and 2018.”
One indicator that suggests weak hands may be close to capitalization is the Advanced NVT signal, which looks at the network to trade value (NVT) ratio and includes standard deviation (SD) bands to identify when bitcoin over-buying or over-selling.
As shown in the chart above, the advanced NVT signal highlighted in light blue is now more than 1.2 standard deviations below average, suggesting that bitcoin is currently oversold.
Following previous instances of NVT signal breaking below the standard -1.2 deviation level the price of BTC has increased, although this will sometimes take several months to demonstrate.
Read also: Bitcoin Price Forecasts Abundant as Traders Focus on BTC’s Next Broad Cycle
an hashrate reached an all-time high
Outside the Indicators on a chain complex, a number of other factors suggest that bitcoin may experience renewed momentum in the near future.
Glassnode data show that the hashrate for the Bitcoin network is now at an all – time high, indicating a significant increase in investment in the mining, the most significant growth occurring in the United States.
Based on the chart above, the price of BTC has historically followed an upward trend with increases in the hashrate average, suggesting that BTC may soon start an uptrend.
A final ray of hope can be found by looking at Google Trends data for bitcoin, which shows a spike in search interest following the recent market downturn.
There have been previous spikes in search interest on Google largely coincided with an increase in the price of bitcoin, so BTC may at least see a rebound in the near future if investors see aside a chance to get a few satoshis reduced price.
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.
