Bitcoin (BTC), $69,000 Although it has drawn a fluctuating chart since reaching its record, the end of the chart was generally bearish. down to $26,700 BTC, LUNA After overcoming the crisis, it rose again to 30,000 dollars. The leading cryptocurrency is now giving signals of coming to the bottom.
BTC on Strong Support
Three important signals, especially for Bitcoin, show that the bottom point has come and a slight rise can be seen from here. The first of these is known as the BTC/Gold ratio. famous economist Jurrien Timmer According to the information conveyed by also, the BTC/Gold ratio is at an important support point. This rate, which has dropped from a local peak, now shows that the selling pressure has subsided.
An update on Bitcoin: Let’s take a look at my favorite metrics to see where things stand after last week’s sell-off. /THREAD pic.twitter.com/3mSpgb0dB5
— Jurrien Timmer (@TimmerFidelity) May 16, 2022
Another important indicator points to whether BTC is held in “strong” or “weak” hands. Dormancy Flow Also known as the indicator, it is at the lowest level after the lows in 2014 and 2018. This shows that “strong” hands, namely very old investors and whales, are holding BTC at the moment. The remaining short-term investors have already sold out.
Despite the 60% drop in Bitcoin price, long-term investors did not sell either. senior analyst at Fidelity Timmer Mentioning these 3 factors, he stated that BTC is currently at a very strong support point. Although Timmer does not use the bullish phrase, strong support usually results in bullishness.