Bitcoin (BTC) advisers may only need a pair of simple moving averages (SMAs) to determine if the base has hit this half-cycle.
In a Twitter thread on June 2, Checkmate, chief chain analyst at cryptocurrency analytics firm Glassnode, reported that the Investor Tool metric was reaching the “buy the dip” end.
The “generation zone” goes into the Bitcoin Investor Tool
The “Investment Tool” is a simple but effective tool for measuring the price of BTC, allowing buyers to take advantage of “outstanding” returns.
Its creator, Philip Swift, founder of LookIntoBitcoin, tried to infer when BTC / USD is likely to be oversold or oversold.
The metric uses the two-year SMA and its 5x multiple. Both lines are drawn relative to spot price and have historically worked well to find highs and lows from generation to generation.
Today, the BTC / USD pair is below the two – year SMA for the first time since March 2020, having crossed the line about a week before the Terra LUNA debacle, now known as Luna Classic (LUNC) , sending bitcoin to ten. -mow low.
“Bitcoin’s simple means of movement are an advantage in navigating bear markets,” Checkmate said, adding that it has “entered the generation zone”.
Hayes ‘more confident’ on $ 25,000 threshold after LFG BTC sale
While bitcoin proponents are far from the $ 30,000 host, the results of the Investor Tool reinforce the notion that analysts are just beginning to emerge.
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As Cointelegraph reported, Arthur Hayes, the former CEO of derivatives giant BitMEX, revealed this week that Terra May ‘s motivational trip to $ 23,800 could mark a long – term baseline for the price of BTC.
Despite a large number of predictions trying to drop to $ 14,000, historical patterns may still play a role in securing bitcoin at or near current levels.
The Terra episode itself, in which the nonprofit Luna Foundation Guard (LFG) liquidated 80,000 BTC, may have secured strong support, is strong, Hayes writes.
“At low rates, expanding its trading books may force it to sell a strong, impermeable arm. The LFG is one such seller. Starting 80,000 physical bitcoins is a real achievement, ”he explained.
“Having looked at the nature of the sale for these bitcoins, I am even more convinced that the $ 25,000-27,000 area for bitcoin is at the bottom of this cycle. »
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