Some people who don’t like Bitcoin say that the price of BTC will go to zero this time, but these three signs show that they are wrong.
As soon as a crypto bear market starts, the “Bitcoin is dead” mob comes out to celebrate the end of the cryptocurrency with the largest market capitalization.
The last few months have been tough for investors, and the price of Bitcoin (BTC) has dropped to a new 2022 low of $17,600, but the latest predictions for the asset’s downfall are likely to be the same as the last 452 predictions.
Bitcoiners who don’t give up have a lot of tricks and on-chain measures they use to tell if BTC is in a buy zone, and it’s time to look at them more closely. Let’s see what measurements that have been used for a long time can tell us about how Bitcoin’s price is moving right now and if the 2021 bull market was Bitcoin’s last chance to shine.
Some traders only buy the bounces of the 200-week moving average.
As shown in the chart below from market analyst Rekt Capital, Bitcoin’s 200-week moving average (MA) has always been a strong level of support.
In previous bear markets, the lows have happened near the 200-MA, which has acted as a strong support level, as shown by the green circles.
The BTC price tends to drop below this line for a short time before slowly climbing back above the 200-MA to start a new uptrend.
BTC is now trading just above its 200-week moving average (MA). During the sell-off on June 14, it briefly fell below this measure. Even though it’s possible that the price will go down, the past shows that it won’t go below this level for a long time.
Price supports that have been in place for a few years should stay in place.
Along with the 200-week MA, there are many important price levels from Bitcoin’s past that should now act as support if the price continues to fall.
The last time Bitcoin traded for less than $24,000 was in December 2020. At that time, $21,900 was a support level that Bitcoin used to bounce back from before it went up to $41,000.
As the chart above shows, if support at $20,000 fails to hold, the next levels of support are between $19,900 and $16,500.
MVRV means it’s time to start putting things together
The market-value-to-realized-value ratio (MVRV), which is currently at 0.969, is another number that shows BTC is at a good time to save.