How To Identify Bitcoin Price Bottoms
Looking at the metrics that help us determine bitcoin price bottoms.The below is from a recent edition of the Deep Dive, Bitcoin Magazine's premium markets newsletter. To be among the first to receive these insights and other on-chain bitcoin market analysis straight to your inbox, subscribe now.In today’s Daily Dive we will dig into a new metric for timing bitcoin bottoms. This metric will use the realized price of two separate cohorts of bitcoin investors; long-term holders and short-term holders. First, before digging into the metric, let’s define some of the terms:Realized Price:....
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Bitcoin, although a powerful and disruptive financial technology, at its core, is mere mathematics. Its code is what keeps the network operating, its supply hard-capped at 21 million BTC, and much more. But could that computer code and supply mechanism also help provide clues to when the crypto market tops and bottoms? According to a […]
It may be a case of "so near yet so far" when it comes to June's multi-year low being the next BTC price floor, warns Willy Woo. Bitcoin's (BTC) market behavior is not yet “synonymous” with previous bear market bottoms, one of the leading crypto analysts argues.In a Twitter thread on Sept. 14, statistician Willy Woo, creator of data resource Woobull, offered three examples of why BTC/USD should still have further to fall.Despite many calling a new macro price bottom during June’s trip to $17,600, not everyone is confident that Bitcoin will avoid a retest.For Woo, there is still reason to....
A quant has explained how the Bitcoin funding rate (72 hour) may be able to correctly signal tops and bottoms in the price of the crypto. Bitcoin Funding Rate May Be Able To Indicate Tops And Bottoms In The Market As explained by an analyst in a CryptoQuant post, the 72-hour version of the funding rate looks to have been effective at pointing out tops and bottoms in the BTC market. The “funding rate” is the periodic payment that Bitcoin futures traders (either long or short) have to make between each other. When the value of this metric is negative, it means shorts are paying a....
Bitcoin and cryptocurrency trading is quite popular these days. With the price upswings and volatility in 2020, crypto traders have made and lost a lot of money. In the last few years, a number of digital currency enthusiasts have been attracted to professional traders and analysts routinely publishing technical analysis (TA) online. Crypto asset trading has exploded this year and there’s a great number of sophisticated traders sharing secrets, alongside short and long-term market outlooks. Digital currency traders can make a lot of money by calling the tops and bottoms by leveraging....
Newbie crypto traders should be wary of bull traps. If you suspect one is on the way, here are some tips to identify it. How to identify a bull trapHere’s how to spot a bull trap with some tell-tale indicators that one is on the way:RSI divergenceA high RSI might be an indication of a potential bull or bear trap.A relative strength index (RSI) calculation may be used to identify a possible bull or bear trap. The RSI is a technical indicator, which can help determine whether a stock or cryptocurrency asset is overbought, underbought or neither.The RSI follows this formula:The calculation....