As crypto prices continue to drop, bitcoin has now breached the $18, 000 mark, and at one time going as low as $17, 600.
At the same time, Ethereum is now below the $1, 000 mark.
As inflation continues to wreck havoc in the wider tech stock market and the broader economy, the crypto space has not been spared as experts predict that a full-on recession seems imminent.
This crypto winter has already seen reputable crypto firms either fail or come close to insolvency. Some of the big players currently getting slaughtered include:
- Celsius Network
- Babel Finance
- Three Arrows Capital (3AC)
According to experts, bitcoin is now currently trading right at its 200-week moving average after briefly dipping below the metric. The 200-week moving average has historically functioned as a solid level of support for bitcoin as shown below:
As shown above, downside wicks below the 200-week moving average represent peak financial opportunity for long-term BTC investors. These downturns however also represent extreme fear and maximum pessimism in market sentiment.
Another metric, the market-value-to-realized-value ratio (MVRV) is also used to determine optimal accumulation phase. When this score is below 1, it coincides with bearish market conditions and an opportunity to buy. This ratio also suggests that bitcoin will see an eventual pullback in the short to medium term.
The current score is at 0.97.
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BTC address: 3CW75kjLYu7WpELdaqTv722vbobUswVtxT
ERC20 Address: 0x03139524428e40E31f13909f8D994C915FB91277
SOL address: 9cC65AWFHj848kntcoyiT8av3jiRQEqyTTmBR1GvVUb
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