NewsletterFive Reasons Why Bitcoin Price Neared The Bottom Already?
After the release of Consumer Price Index (CPI) data, Bitcoin, along with other cryptocurrencies, witnessed a short rally. The price movement in the last few days appears to show an end to the rally. There are several metrics in favor of the argument that a Bitcoin bottom is around the corner. Experts suggest BTC is undervalued at the moment, indicating a price spike in near future.
Why Bitcoin Bottom Is Close To Current Range?
As the macroeconomic scenario continues to be unfavorable to Bitcoin, the top cryptocurrency asset is trading at undervalued levels. Meanwhile, around five technical indicators point to the assertion that Bitcoin is yet to realize its potential. BTC’s total supply in profit fell sharply last week, which is currently 56% of the total supply. This is important to track the proportion of traders with unrealized profits and losses.
As of writing, Bitcoin price stands at $21,612, down 0.78% in the last 24 hours, according to CoinMarketCap. On a weekly basis, BTC is up 0.56%. Also, BTC holders are currently experiencing a 1% loss, as supported by analysis of the net unrealized profit or loss (NUPL). NUPL is the difference between unrealized profit and unrealized loss to determine whether the network is currently in a state of profit or loss.
Bitcoin Holder Community In Losses Currently
In addition to this, long term Bitcoin holders are currently spending their coins at a 44% loss. The Puell Multiple, which measures 1-year miner revenue growth, indicates Bitcoin is currently in the accumulation zone.
According to Crypto Quant data, the MVRV ratio is below 1 again, indicating that the average bitcoin holder is at a loss. The market value to realized value (MVRV) is a ratio of an asset’s market capitalization versus its realized capitalization. A comparison of the metrics can help get an insight on when price is above or below fair value.
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