Michael van de Poppe, head of trading firm Eight, released video reviewin which he shared network and technical analytics of bitcoin.
On-chain analysis
MVRV Base Value Multiplier
The MVRV (Market Value to Realized Value) ratio is the ratio of the market value of an asset to its realized value and allows you to determine the peak or bottom of the market. An MVRV value below 1 (dotted line on the chart) is a very good time to buy.
“It could be argued that the rise of the chart above the dotted line means that the bottom has already been reached,” the analyst said. – Bitcoin will continue the uptrend, and then there will be a standard correction of 20-40%. If there is no such black swan as covid has become in 2020, then the uptrend will continue.”
Realized Price Ratio RPLR
Coefficient RPLR (Realized Price-to-Liveness Ratio) allows you to compare the realized price with asset sales. During this bearish cycle, Bitcoin has been below the realization price for 219 days. It was a great period to buy an asset. We will most likely not return below the selling price until the next bear market.
RHODL coefficient
This ratio allows you to determine the number of long-term holders of bitcoin. During the bearish phase, RHODL goes through the roof, and the low will be reached at the peak of the bull market.
Judging by the latest peak, this bear market was the heaviest we have seen so far.
The decline in RHODL means that bitcoin is changing hands – new buyers are entering the markets. “Don’t forget to sell when the ratio reaches its minimum values,” the analyst concluded.
Technical analysis
In this bearish cycle, the price of bitcoin has fallen below the all-time high of 2017 and is now gaining momentum. Now there is a consolidation under the strong resistance level of $29-30 thousand. As soon as bitcoin overcomes it, a huge number of short positions will be closed, which will allow reaching $40-45 thousand. Then there will be a correction to the level of the broken resistance, after which the rally will continue.
As soon as we break the $30,000 mark, the hype will return to the market.
In terms of the daily timeframe, support is at $25,000, which could be retested. However, the trader believes that this is unlikely (“too obvious level”) and, most likely, the usual consolidation is now taking place before the upward breakdown.
On the 4-hour timeframe, the $27,000 level plays the role of critical support. The lows are rising, so an upward move is likely. The resistance at $28,700 has been tested many times and is therefore weakened. This means that there is a very high probability of a breakout in the $40-45K direction.
At the end of February, Michael van de Poppe predicted that Bitcoin would rise to $40,000 this year.
▼
The most interesting and important news on our channel in Telegram
Comments (No)