Do These 4 Metrics Indicate The BTC Bottom is Near?

With Bitcoin having dropped nearly 70% from its all-time-highs, and a rout continuing in the stock market, Crypto Briefing, believes the BTC bottom could be near.

Crypto Briefing, a publication covering everything crypto, has found four metrics that may show a trend reversal could be on the horizon, and a potential new BTC bull market could come next.

1: The 200-week moving average.

In previous BTC bear markets, the 200-week MA has acted as a strong support level. Every time BTC retracted towards the 200, a market bottom soon formed, with a new bullish cycle beginning.  BTC is now trading near its 200-week MA.

2: Entity-Adjusted Dormancy Flow.

The EADF on-chain metric considers the ratio of market cap to annualized “dormancy” value to see whether BTC market participants are spending their Bitcoin or not. Since 2011, this metric has practically nailed every market bottom. The EADF now suggests a bottom could be near.

3: Net Unrealized Profit/Loss.

The NUPL indicator helps anticipate market sentiment shifts. It uses a number of on-chain data points to evaluate investor emotion. In its latest fall to $20,000 or so, the market has shifted from fear to capitulation. Capitulation is the final stage of a bear cycle before emotion shifts to hope, signaling the potential beginning of a new bull market.

4: Regression Bands.

According to Crypto Briefing, BTC is trading between the “non-bubble fit regression band and the non-bubble lower regression band, a signal that has marked the market bottom in previous downtrends.”

Although Crypto Briefing does see the BTC bottom may be on the horizon, and a potential bull market may begin soon after, they do say Bitcoin could drop to as low as $15,670 before the reversal begins.

You can read Crypto Briefing’s full BTC market analysis, HERE