Bitcoin (BTC) could have already seen a price bottom or be “really close” to it, analysts believe after reviewing new data this week.
In a Twitter thread on June 22, well-known indicator creator David Puell revealed what he thinks “looks interesting” about Bitcoin’s current buying and selling.
The bottom of the “high probability” is in
With many sources calling for BTC/USD to drop to $14,000 or lower, bullish positions on the current price action are few and far between.
For Puell, however, the dynamic between long-term (LTH) and short-term (STH) holders suggests that the situation is not necessarily as bearish as many fear.
Highlighting the cost base for each group, Puell showed that those who had been in the market longer paid less overall for their BTC than recent investors.
With Bitcoin at multi-year lows, the pain therefore lies more with STH than LTH. The selling capitulation of the first could therefore already have been expressed.
“imo, most likely we have reached or are really close to a bottom,” replied popular analyst Root.
Realized price LTH: $22.2k.
Price made by STH: $31,700.https://t.co/1YEGkriVAJ
—David Puell (@dpuellARK) June 22, 2022
As TSWT reported, however, even LTHs – defined as wallet entities holding coins for 155 days or more – have been doling out the market in recent weeks.
Mayer Multiple approaches the historic floor
Those looking for a profitable opportunity to “buy the dip” on Bitcoin may still be in luck, according to another popular on-chain metric, the Mayer Multiple.
Related: Bitcoin Price Rises to $20.7K as Fed’s Powell Says More Rate Hikes Are “Appropriate”
As of June 22, the indicator, which shows how far the current spot price is below the 200-day moving average (DMA), suggests that ROI rarely improves.
At 0.5, the multiple is 50% lower than the 200 DMA and was only 2% lower in Bitcoin’s lifetime.
“Macro conditions are different this time but good to keep an eye on,” crypto entrepreneur Kyle Chasse commented on the numbers.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of TSWT.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.