That’s why you should consider investing in Bitcoin (BTC) now, according to these experts.

“When will it end? is a question that plagues the minds of investors who have weathered the current crypto winter and witnessed the decline of several protocols and investment funds over the past few months.

Bitcoin (BTC) is once again experiencing resistance from its 200-week moving average this week, and the real issue is whether it can move higher in the face of multiple headwinds or whether the price will return to the range it is in. has been trapped since early June.

According to the latest newsletter from online market analysis firm Glassnode, “duration” is the main difference between the current bear market and previous cycles, and many online metrics are now comparable to these historical prints.

One metric that has proven to be a reliable indicator of bear market lows is the strike price, which is the value of all bitcoins at the price they were bought at, divided by the number of BTC in circulation.

As shown in the chart above, with the exception of the flash crash in March 2020, bitcoin has traded below its realized price for an extended period during bear markets.

This suggests that the current calls for an end to the crypto winter are premature as historical data shows the market still has several months of sideways price action ahead of the next major uptrend.

Will the lower threshold be closer to $14,000?

As for what traders should look out for to signify the end of winter, Glassnode pointed out that Delta price and Libra price are “on-chain pricing patterns that tend to pull spot prices during late bearish phases. See also: Good news for Ethereum: Whales keep hoarding ETH!.

As shown in the chart above, previous major bear market lows were set after a “short-term wick move to Delta price” highlighted in green. A similar move in the recent market suggests a floor for BTC around $14,215.

During these bearish periods, the price of BTC was also in an accumulation range “between the balanced price (lower range) and the strike price (upper range)”, where the price is currently.

One of the classic signs that a bear market is coming to an end is the massive capitulation that has exhausted the last few sellers.

While some are still arguing whether this happened or not, Glassnode has highlighted network activity during the June drop to $17,600 as a possible sign that the capitulation has indeed occurred.

At the time BTC dropped to $17,600, the total BTC supply was 9.216 million BTC with an unrealized loss. After a breakout on June 18, a month of consolidation and a rise in price to $21,200, this volume dropped to 7.68 million BTC.

Further evidence that the capitulation has already taken place is the “staggering volume of BTC” that blocked the loss realized between May and July.

The collapse of Terra generated a total realized loss of $27.77 billion, while the June 18 drop below the all-time high of the 2017 cycle resulted in a total realized loss of $35.5 billion.

Is this the end of the bear market?

The final metric to indicate that capitulation has already occurred is the Adjusted Return on Cost Ratio (aSPOR), which compares the cost of products when they are spent and when they are created. On the same subject: Shiba Inu Price Prediction – Can SHIB Cryptocurrency Hit a New All-Time High in 2022?.

According to Glassnode, when profitability drops (indicated by blue arrows), investors should realize significant losses that eventually lead to a “cascading last moment of capitulation” highlighted in red.

To make sure that the capitulation actually happened and the accumulation continues, Glassnode indicated that, ideally, the value of aSOPR should return above 1.0.

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