Bitcoin (BTC), one of the most precise indicators on the market, needs to fall before it can establish a macro bottom.
According to data from Glassnode, Bitcoin’s MVRVZ Score almost signals a price reverse.
MVRVZ Score inches towards macro bottom
New figures show that BTC/USD is likely to continue falling despite ongoing debate about whether or not it will reach its current macro lows at $17,600.
Filbfilb, cofounder of Decentrader trading suite, noted that the MVRVZ score is now in the classic green zone but not at the level which has accompanied past price bottoms.
MVRVZ measures the Bitcoin spot price relative to its “fair value”.
It uses market cap, realized price data and standard deviation to predict the top and bottom of Bitcoin.
MVRVZ has captured every top and bottom macro on BTC/USD throughout its history and done it with an accuracy of two week, according to data resource LookIntoBitcoin.
Although the metric has not fallen below its green zone more than once, this was in March 2020. However, it would be possible to see a similar performance with more downside pressure.
Filbfilb said that “this chart is *the* one for me,” referring to the most recent readings.
“We usually bottom when MC
Chart of Bitcoin MVRVZ Score. Glassnode
$16,000 bottom zone gains traction
$15,600 would be consistent with other predictions about where Bitcoin will eventually bottom.
Related: Bitcoin will experience a ‘long bear’ market, says a trader, with the BTC price at $19K
CryptoBullet, a popular Twitter account, updated his followers to include the area as one of many important support zones to monitor.
It confirmed that $16,000 is the average deviation from Bitcoin’s 50-month moving mean.
Some very important #BTC levels: 16k – Average Deviation from MA50 (-25%) 14k – 2019 Echo Bubble Top 12.2k – Celsius Liquidation 10.7k – Key Horizontal Level https://t.co/hEcnj8wsak pic.twitter.com/1Xke0F7WSe
— CryptoBullet (@CryptoBullet1) July 2, 20,22
Bitcoin’s relative strength indicator, or RSI is already at its lowest point ever. This is another sign of the market’s oversold condition. It’s now just below its previous halving cycle peak of almost $20,000.
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