Vladislav Sopov
Bitcoin (BTC), the largest cryptocurrency, could be nearing the “last buying opportunity” before radical growth
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Contents
- Bitcoin (BTC): This indicator suggests “parabolic” performance
- 88.3% of short-term Bitcoin (BTC) holders are underwater
The MVRV Z-Score, a sophisticated Bitcoin (BTC) valuation indicator, is approaching a zone that has historically presented amazing opportunities for Bitcoin (BTC) bulls. In 2019 and 2015, hitting these levels led to “parabolic” rallies, says a veteran cryptocurrency analyst.
Bitcoin (BTC): This indicator suggests “parabolic” performance
The pseudonymous trader and analyst named Coiner-Yadox (@Yodaskk on Twitter) is certain that Bitcoin (BTC) could be poised for its “last buying opportunity” ahead of a parabolic growth phase. They came to this conclusion based on the MVRV-Z-Score indicator, which measures the correlation between Bitcoin (BTC) market valuation and its realized valuation (the price of each Bitcoin (BTC) at the time of its last movement between two on-chain wallets) tracked) and a standard deviation test.
As shown by @Yodaskk, z-score indicators below 0.1 would be considered extremely low. Once the chart exits the zone and touches it again, Bitcoin (BTC) will become too undervalued, indicating imminent “parabolic” growth.
To prove this thesis, he revealed similar patterns that occurred two years before the 2017 and 2021 uptrends. The brief “dip” in the MVRV Z-Score marks the final phase of a bearish recession.
His audience shares this opinion. Typically, below $24,000 is considered an “easy” buy zone in the current part of a market cycle. However, traders should be prepared for a panic induced pullback to the ‘low 20s’ levels.
As previously reported by U.Today, on August 16, 2023, Bitcoin (BTC) erased all of its gains for the past nine weeks. In no time, digital gold collapsed below $25,400.
Historically, “pre-halving” years are known for events of this type, analysts say.
88.3% of short-term Bitcoin (BTC) holders are underwater
However, the market is particularly merciless towards Bitcoin (BTC) traders of various categories in the third quarter of 2023. According to an analysis by leading on-chain data tracker Glassnode, short-term holders were the worst sufferers of the ongoing collapse.
As long-term Bitcoin (BTC) holders aggressively increase the number of coins in their wallets, “paper hands” are suffering. Nearly 9 out of 10 short-term holders experience losses, according to data from Glassnode. Therefore, 2.26 million BTC are currently held with an unrealized loss.
At press time, Bitcoin (BTC) price is stabilizing above $26,100, up 0.11% over the past 24 hours. Alternative’s Crypto Fear and Greed Index has fallen to its lowest level since March 2023.
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