Bitcoin (BTC) support at the $30,000 level has proven to be quite resilient amidst the turmoil of the past two weeks with many tokens in the top 100 now showing signs of consolidation after prices bounced off their recent lows.
During high volatility and sell-offs, it's difficult to take a contrarian view and traders might consider putting some distance from all the noise and negative news-flow to focus on their core convictions and reason for originally investing in Bitcoin.
Several data points suggest that Bitcoin could be approaching a bottom which is expected to be followed by a lengthy period of consolidation. Let's take a look at what experts are saying.
The spike in realized losses by Bitcoin holders was touched on by 'Root' a pseudonymous analyst who tweeted the following chart and said realized losses are “reaching bear market highs.”
While previous bear markets have seen a greater level of realized losses than are currently present, they also suggest that the pain could soon begin to subside, which would allow Bitcoin to begin the slow path to recovery.
Analysts have also pointed out that "Bitcoin's RSI is now entering a period that has historically preceded outsized returns on investment for long-term investors.”
According to Rekt Capital,
Additional on-chain evidence that Bitcoin may soon see a revival was provided by Jurrien Timmer, Global Director of Macro at Fidelity. According to the Bitcoin Dormancy Flow, a metric that displays the dormancy flow for Bitcoin that “roughly speaking is a measure of strong vs. weak hands.”
Timmer said,
One metric that suggests that the weak hands may be nearing capitulation is the Advanced NVT signal, which looks at the Network Value to Transactions Ratio (NVT) and includes
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