70% Down Bitcoin Bear Market Kills BTC ‘Tourists’ As One Metric Shows It May Be A Good Time To Buy


Bitcoin speculators (BTC) have disappeared from the market and their spirits are “destroyed,” says a popular analyst; Philip Swift.

December 14 tweeted the founder of the DecenTrader trading team he showed Only risk returns are available for BTC at current prices.

Analyst: ‘Euphoria Destroyed’ by Bitcoin Bear Market.

The BTC/USD pair is about 70% off its recent all-time highs, and the decline has pushed out many short-term investors.

The The FTX scandal prompted further capitulationwhich continues while its sequels take place panic among nervous investors.

For Swift, signs that speculator “euphoria” has dampened Bitcoin come in the form of the popular HODL wave metric.

HODL Waves groups coins by age, which is the amount of time they were inactive before they left your wallet. The resulting data shows the extent to which holders trade long or short.

The next iteration of the metric, Realized Cap HODL (RHODL) waves, further expands these bars based on the realized price, which is the price at which each Bitcoin last moved.

“RHODL Waves represents the base price of bitcoins that have been held in wallets for different time periods. Each time period is represented by waves on the chart.” Explain Quickly provide a description of the chain data source for LookIntoBitcoin.

RHODL currently shows a clear minority of coins moving through the network shortly after being used in a previous transaction. Rather, current transactions include tokens that were last moved 6-12 months ago as the most common age group.

In the attached chart, the darker the color of the wave, the more recently the corresponding currencies have changed.

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“The euphoria of Bitcoin tourists has been completely destroyed,” Swift commented.

He added that under these circumstances, the investment’s risk-reward ratio is the most attractive, based on historical trends in the RHODL wave metric.

“The warmer colors of Cap HODL Waves indicate periods when participants are euphoric,” he wrote:

“We are now at the bottom of the cycle … which is the best risk-reward opportunity.”

Bitcoin Realized Cap HODL (RHODL) Wave Chart. Source: Philip Swift on Twitter.

From capitulation to accumulation

Swift isn’t the only one watching for potential bullish signals for Bitcoin in 2022.

In the latest edition of The Week On-Chain newsletter, analytics firm Glassnode emphasized the current trend of BTC investors “capitulating” to “accumulate”.

He did it through metrics UTXO realized price densitya tool similar to RHODL Waves that provides information on seller intensity based on the age of the coin.

“After every bear market leg in 2022 we are seeing an increase in coin redistribution density (and thus re-hoarding),” he wrote, noting that the $18,000 level was especially strong after the drop to $24,000.

The accompanying chart showed investors buying every BTC price rally in the macro, especially in 2017. at the end and until 2021 in April

UTXO Realized Price Density (URPD) de Bitcoin. Source: Glassnode

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Source: news.google.com

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