The leading cryptocurrency, Bitcoin (BTC), continues to trade below $70,000 due to increasing macroeconomic uncertainty stemming from the US-Iran conflict.
Although talk of a bottom for BTC has increased recently after facing sharp declines since October, one analyst predicted further declines before the bottom is reached.
On-chain analyst Willy Woo, in his analysis from account X, predicted that BTC’s bottom could be in the $46,000-$54,000 range.
According to Woo, on-chain models indicate a bottom for BTC in the $46,000-$54,000 range.
According to Woo, who noted that this prediction is based on traditional on-chain models, an indicator representing capital flows into BTC has shown consistent outflows since November of last year.
“Traditional onchain models predict that BTC will bottom out between $46,000 and $54,000. They also offer clues as to how long we should wait.”
The orange line represents the capital held within BTC, and there have been sharp outflows of this capital since November.
Woo also noted that the Cumulative Value Days Destruction (CVDD) bottom pattern, which has a rising base line over time, currently indicates a value of approximately $45,500.
“The advantage of the CVDD Condominium Model is that its value increases over time; currently it is 45,500 TL.”
Woo concluded by stating that all of these on-chain models operate based on historical data and issued a warning to investors.
According to Woo, the models are based on historical behavior encompassing only four previous bear markets within a broader risk asset bull market cycle, and if this fundamental changes, the market could enter a deeper, unprecedented bear market phase.
“Although the on-chain model is based on historical data, the scope of the analysis is limited given that Bitcoin has only experienced four bear markets to date, and even these occurred within a long-term bull market environment for risky assets.”
If this trend collapses and doesn’t happen again, the market could enter a deeper and more uncertain bear market phase.
*This is not investment advice.
The Bitcoin market is highly volatile and the underlying investment should be considered, the only way I can help you learn this business is if you try (Jvnior) trading service he has been a great trader, and he has an investment platform where you don’t need stress on your trade, all you need to do is to invest an watch your trading grow from your dashboard, he is an outstanding manager,……… Reach out to him on
+44_/7349_/562_/946