, 2022-10-21 10:10:00,
Bitcoin (BTC) and other riskier assets slipped on Oct. 21 as traders scrutinized macro indicators that suggest the Federal Reserve would continue to hike rates. Nonetheless, the BTC/USD pair remains rangebound inside the $18,000–$20,000 price range, showing a strong bias conflict in the market.
BTC price holding above $18K since June
Notably, BTC’s price has been unable to dive deeper below $18,000 since it first tested the support level in June 2022. As a result, some analysts believe that the cryptocurrency is bottoming out, given it has already corrected by over 70% from its record high of $69,000, established almost a year ago.
“During the 2018 bear market, BTC saw a max drawdown from peak to trough of 84%, lasting 364 days, while the 2014 cycle lasted longer, bottoming after 407 days,” noted Arcane Research in its weekly crypto market report, adding:
“Both bottoms were followed by unusually low volatility.”
In addition, a flurry of widely-watched on-chain Bitcoin indicators also hints at a potential bullish reversal ahead. Let’s look at some of the most historically significant metrics.
Bitcoin MVRV-Z Score
The MVRV-Z Score assesses Bitcoin’s overbought and oversold statuses based on its market and fair value.
Historically, when Bitcoin’s market value crosses the fair value, it indicates a market top (the red zone). Conversely, it indicates a market bottom (the green…
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