How Bitcoin On-Chain Signals Present A Solid Case For A Market Bottom

Name	Symbol	Market	Market Cap ($)	Algorithm
Quant	QNTUSD	Crypto	1,515,939,482	Not Mineable

Name

Symbol

Market

Market Cap ($)

Algorithm

Quant

QNTUSD

Crypto

1,515,939,482

Not Mineable

	Price Change	Price Change %	Current Price	Bid Price	Offer
	-2.10	-1.98%	103.93	103.96	104.05

Price Change

Price Change %

Current Price

Bid Price

Offer

-2.10

-1.98%

103.93

103.96

104.05

High Price	Low Price	Open Price	Prev. Close	52 Week Range
107.85	103.25	105.94	106.03	83.10 - 153.83

High Price

Low Price

Open Price

Prev. Close

52 Week Range

107.85

103.25

105.94

106.03

83.10 - 153.83

Exchange	Last Trade	Size	Trade Price	Currency
GDAX	15:09:30	1.39	103.94	USD

Exchange

Last Trade

Size

Trade Price

Currency

GDAX

15:09:30

1.39

103.94

USD

Price x Volume	Volume	Base Symbol	Related Pairs
885,494.86	8,447.21	QNT	QNTEUR	QNTGBP	QNTBTC

Price x Volume

Volume

Base Symbol

Related Pairs

885,494.86

8,447.21

How Bitcoin On-Chain Signals Present A Solid Case For A Market Bottom

19/10/2022 2:51pm

NEWSBTC

Bitcoin price remains stuck below its former all-time high set five years ago. The shocking decline has been one of the worst crypto winters on record, and the market is bracing for continued meltdown. However, a series of on-chain indicators in BTC could provide clues to how close we are to a bottom. Let’s take a look. A Series Of Six On-Chain Indicators Shout: Bitcoin Bottom Is In Bear markets are brutal in Bitcoin or otherwise, because the bottom is only known in hindsight. The feeling that markets will fall forever, creates a fear that freezes investors from buying at long-term lows. Technical analysis is one tool that can be used to find oversold conditions or other signals that support the idea of a bottom. Unique to cryptocurrencies, is a subset of quantitative fundamental analysis that focuses on on-chain signals. Several such tools are potentially suggesting a bottom is in. Here we have the Puell Multiple. The Puell Multiple is calculated by dividing the daily issuance value of bitcoins (in USD) by the 365-day moving average of daily issuance value. Puell Multiple | Source: glassnode Bitcoin Reserve Risk is currently demonstrating the most attractive risk/reward setup ever. Reserve Risk is defined as price / HODL Bank. It is used to assess the confidence of long-term holders relative to the price of the native coin at any given point in time. Bitcoin Reserve Risk | Source: glassnode In this chart, we have MVRV Z-Score. The MVRV Z-Score is used to assess when Bitcoin is over/undervalued relative to its “fair value”. MVRV Z-Score | Source: glassnode Net Realized Losses are the largest ever. Net Realized Profit/Loss is the net profit or loss of all moved coins, and is defined by the difference of Realized Profit – Realized Loss. Net Realized Profit/Loss | Source: glassnode The Realized Profits-to-Value Ratio is also in the bottom zone. The Realized Profits-to-Value Ratio is defined as the ratio of Realized Profits and Realized Cap. This metric compares profit-taking in the market with its overall cost basis on a dollar-to-dollar basis. Realized Profits-to-Value Ratio | Source: glassnode Finally, Net Unrealized Profit/Loss shows capitulation. Interestingly, BTC never quite reached a state of euphoria and greed during the last market top. The dataset is also becoming less volatile over time, much like Bitcoin price itself. Net Unrealized Profit/Loss is the difference between Relative Unrealized Profit and Relative Unrealized Loss. Net Unrealized Profit/Loss | Source: glassnode While none of these signals confirm the bottom is in for Bitcoin price action, each tool is in a zone that historically has been where past bear markets ended. Should the top cryptocurrency by market cap bottom here, it would be the smallest maximum drawdown in Bitcoin history. Follow @TonySpilotroBTC on Twitter or join the TonyTradesBTC Telegram for exclusive daily market insights and technical analysis education. Please note: Content is educational and should not be considered investment advice. Featured image from iStockPhoto, Charts from TradingView.com

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