“Bitcoin (BTC) Bottom According To This On-Chain Data!”

Leader cryptocurrency unit of Bitcoin (BTC)After hitting $69,000 in November 2021, it has consistently lost value.

Dylan LeClair, one of the well-known analysts in the crypto community, on-chain Based on his data, he thinks that the bottom level is coming in Bitcoin.

#Bitcoin back below its average on-chain cost basis, otherwise known as realized price, which currently is ~21k.

A typical occurrence in a $BTC bear market. pic.twitter.com/LRq1WFGwfr

— Dylan LeClair 🟠 (@DylanLeClair_) September 22, 2022

“According to on-chain data, we may have hit bottoms for $BTC. In recent weeks, the realized price has been below the real price.”

Although LeClair shares a lot of on-chain data in his tweet thread, the clearest data seems to be on Bitcoin Realized Value.

Bitcoin Realized Value data, which analysts frequently follow, has been below the current value of BTC for the last 100 days.

According to historical data, low levels are seen for the bear season when the price in Bitcoin stays above the price in the stock market. In addition, the fact that the Realized Value data is above the actual price shows that the majority of investors are in loss.

According to the graph, similar scenarios took place in the 2011, 2015, 2019 and 2020 seasons. After the low that was below the value realized in the past, new rises began in the market.

Will BTC Rise According to These Data?

As the author of the news and a follower of the global economy, I would like to express my humble opinion.

Technical analysis and on-chain data are undoubtedly very important for cryptocurrencies. However, these data should be supported by the current image of the economies.

During the pandemic process, states provided a large amount of financial support to their citizens. Lots of money in people’s pockets; It poured into investment areas such as stocks, cryptocurrencies, gold and silver. Thus, there were great rises in Bitcoin. Abundant money also created the problem of inflation all over the world.

With the end of the pandemic, countries started to switch to tight monetary policies to stop the rising inflation around the world.

States that implement tight monetary policies want people to access credit more difficult by keeping interest rates high. Thus, it is aimed to break the demand-side inflation. Breaking supply-side inflation, on the other hand, is more dependent on world-wide social events (wars, political moves).

In the coming weeks or months, it is of course normal to see a recovery in cryptocurrencies. But big rallies do 3x, 5x altcoins I do not think that a market that is flying in the air will take place under these conditions.