Bitcoin, Ethereum and other altcoins show signs of impending price move
According to the MVRV divergence, on-chain analytics firm Sanitment suggests that Bitcoin, Ethereum and other altcoins are currently “underbought.”
📊 One of @santimentfeed‘s most popular metrics, MVRV, indicates that short, mid, and long term timeframe trading returns are at ‘pain’ thresholds that historically foreshadow oncoming price turnarounds. When this turnaround will happen is the more challenging to identify. pic.twitter.com/65s1EPITTA
— Santiment (@santimentfeed) July 2, 2022
Per the on-chain analytics company, these crypto assets have reached the historic MVRV level, where a price turnaround to alleviate current losses may be anticipated, although it is difficult to predict when this will occur.
Several floor formation indications are currently flashing for Bitcoin, according to Glassnode. However, given the current macroeconomic environment, all models and historical precedents may be put to the test when it comes to determining a bear market floor for Bitcoin.
Although all Bitcoin macro indicators, from technical to on-chain, are at all-time lows and coincide with the development of the bear market floor in previous cycles, it is still difficult to pinpoint the bear market bottom at this point.
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As a general rule, trading volume is the highest when markets capitulate, and such capitulation creates major bottoms.
This weekly chart includes the aggregated bitcoin volume for most BTC pairs (spot & perpetuals across exchanges).
Volume hit its all time high two weeks ago. pic.twitter.com/6ONLibQiL2
— Alex Krüger (@krugermacro) July 2, 2022
Cryptoanalyst and economist Alex Kruger believes that Bitcoin might have capitulated during the market slump two weeks ago. The analyst underlined the fact that trading volumes reached their peak at this time, indicating capitulation, which produces significant bottoms.
