Bitcoin (BTC) must go down before putting a macro bottom, it shows one of the most accurate indicators in the market.
Data from sources, including a chain analytics company Glass knot shows that Bitcoin’s MVRV-Z score is almost, but not quite, signaling a price reversal.
MVRV-Z score in macro towards the bottom
Amid the ongoing debate as to whether, or when, BTC / USD will break above its current macro lows of $ 17,600, new data suggests the market should easily drop further.
How noticed from Filbfilb, co-founder of the Decentrader trading suite, the MVRV-Z score is now in its classic green zone, but not yet to the point it has accompanied price lows in the past.
MVRV-Z measures how high or low the spot price of Bitcoin is relative to what is called its “fair value”.
It uses market cap and realized price data along with standard deviation to create what has proven to be one of Bitcoin’s most efficient highs and lows prediction tools.
MVRV-Z has captured every macro up and down on BTC / USD in its history, and it did so with a two-week accuracy, data asset LookIntoBitcoin Notes.
The metric has fallen below its green zone only a handful of times, most recently in March 2020, but greater downward pressure would provide a repeat performance.
“This chart is * the one * for me,” commented Filbfilb on the latest readings.
“Normally we get to the bottom when MC
The lower $ 16,000 zone is gaining ground
$ 15,600 would link to various existing predictions of where Bitcoin will be at the bottom.
Related: Bitcoin Will See “Long Bear Market,” Trader Says With BTC Price Stuck at $ 19,000
In an update for Twitter followers over the weekend, meanwhile, the popular CryptoBullet account has included that area as one of several important support zones to watch.
$ 16,000, he confirmed, also marks the average deviation from Bitcoin’s 50-month moving average.
Some very important #BTC levels:
16k – Average deviation from MA50 (-25%)
14k – 2019 Eco Bubble Top
12.2k – Celsius settlement
10.7k – Key horizontal level pic.twitter.com/1Xke0F7WSe
– CryptoBullet (@ CryptoBullet1) July 2, 2022
Bitcoin’s Relative Strength Index, or RSI, is already at its level the lowest everanother indication of the oversold nature of a market now below the peak of the previous nearly $ 20,000 halving cycle.
The views and opinions expressed herein are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move carries risk, you should conduct your research when making a decision.