On-Chain Data Suggests Bitcoin Bottom Comparable To Previous Cycles

As the eyes of the crypto community turn to tomorrow’s Federal Reserve FOMC meeting, an on-chain analysis by Glassnode suggests that the bottom just needs to be hammered out. In their weekly report, the firm states that a number of metrics are currently bouncing, making a relatively consistent argument that the bitcoin market has hit a bottom. In this regard, the current numbers are “almost textbook” comparable to previous cycle lows. To back up the claim, Glassnode consults the Mayer Multiple and the Realized Price. The latter of the two metrics calculates the acquisition price per coin. This allows to determine whether the overall market shows an unrealized loss which is the case when the spot price is below the Realized Price. Related Reading: Bitcoin Price Close Above 100 SMA Could Spark A Fresh Surge: Here’s Why The Mayer Multiple helps assess overbought and underbought conditions. It plots the relationship between the BTC spot price and the 200-day Simple Moving Average. The latter is a model widely used in traditional financial analysis. Gassnode writes: Remarkably, this pattern has repeated in the current bear market, with the June lows trading below both models for 35 days. The market is currently approaching the underside of the Realized Price at $21,111, where a break above would be a notable sign of strength. Bitcoin Forming A Bottom Takes Time A third metric considered by Glassnode, the Balanced ...