Over the past week, the price of Bitcoin [BTC] went up and down, but it stayed lower than expected. At the time of press, the price of BTC had gone up by nearly 3% in the past week. Also, at $17,019.18, BTC was trading just above $17,000 and had a market capitalization of $327.2 billion.
Still, the stars may soon line up in favor of investors, which could start a new bull rally. Dan Lim, a writer and analyst at CryptoQuant, just put out an analysis that suggested a possible bottom for the BTC market.
Dan Lim’s research shows that BTC’s Market Value to Realized Value (MVRV) has been below one for more than 170 days this year. In 2018, it was less than one for 134 days. After that, the trend changed. So, a similar event that works out well for investors might not be out of the question.
In an interesting twist, Dan also posted another analysis that said BTC’s hash ribbon model didn’t work. According to the analysis, this was the first time since the golden cross of the Hash Ribbon model that the dead cross showed up without the price of Bitcoin going up.
The FTX exchange bank run caused the hash rate of F2Pool, which was one of the largest mining pools in the world, to drop by a lot. Because of this, the price of Bitcoin dropped to almost $16,000. Also, miners have had a hard time in the last few weeks because Bitcoin miners gave up 10,000 BTC on December 1.
The daily chart for BTC showed that the price of the king coin had support and resistance at $15,800 and $17,200. Also, the Moving Average Convergence Divergence (MACD) showed that BTC could soon break through its resistance and start climbing up the price ladder. So, BTC investors may have a reason to be optimistic about the market.
The Money Flow Index (MFI) also showed a small rise, which makes the chances of a breakout to the north even higher.
According to CryptoQuant’s data, BTC’s exchange reserve also went down, which was a good sign because it meant there was less pressure to sell. But BTC’s transaction volume just hit a low not seen in two years: $260,626,928.14. This was worrying because it suggested that less activity on the network could cause problems for Bitcoin in the weeks to come.
