{"id":453861,"date":"2022-05-27T23:06:09","date_gmt":"2022-05-27T20:06:09","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/on-chain-data-flashes-bitcoin-buy-signals-but-the-bottom-could-be-under-20k\/"},"modified":"2022-05-27T23:06:09","modified_gmt":"2022-05-27T20:06:09","slug":"on-chain-data-flashes-bitcoin-buy-signals-but-the-bottom-could-be-under-20k","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/on-chain-data-flashes-bitcoin-buy-signals-but-the-bottom-could-be-under-20k\/","title":{"rendered":"# On-chain data flashes Bitcoin buy signals, but the bottom could be under $20K"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3672fb738d3\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3672fb738d3\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/on-chain-data-flashes-bitcoin-buy-signals-but-the-bottom-could-be-under-20k\/#%E2%80%9D_On-chain_data_flashes_Bitcoin_buy_signals_but_the_bottom_could_be_under_20K_%E2%80%9C\" >&#8221; On-chain data flashes Bitcoin buy signals, but the bottom could be under $20K &#8220;<\/a><ul class='ez-toc-list-level-2' ><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/on-chain-data-flashes-bitcoin-buy-signals-but-the-bottom-could-be-under-20k\/#Analysts_will_stay_bearish_until_45000_is_reclaimed\" >Analysts will stay bearish until $45,000 is reclaimed<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/on-chain-data-flashes-bitcoin-buy-signals-but-the-bottom-could-be-under-20k\/#Wheres_the_bottom\" >Where&#8217;s the bottom?<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_On-chain_data_flashes_Bitcoin_buy_signals_but_the_bottom_could_be_under_20K_%E2%80%9C\"><\/span>&#8221; On-chain data flashes Bitcoin buy signals, but the bottom could be under $20K &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div class=\"post-content\" data-v-2a0745c6>Every Bitcoin investor is searching for signals that the market is <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>roaching a bottom, but the price action of this week suggests that we&#8217;re just not there yet.\u00a0<\/p>\n<p>Evidence of this can be found by looking at the monthly return for Bitcoin (BTC), which was hit with a rapid decline that \u201ctranslated to one of the biggest drawdowns in monthly returns for the asset class in its history,\u201d <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/newsletter.blockwareintelligence.com\/p\/blockware-intelligence-newsletter-bb7?sd=fs&amp;s=r\">according<\/a> to the most recent Blockware Solutions Market Intelligence <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a>letter. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-05\/243db887-295b-4738-abc5-cc1157046e0f.jpg\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>Bitcoin monthly returns. Source: Blockware Solutions<\/em><\/figcaption><\/figure>\n<p>Bitcoin continues to trade within an increasingly narrow trading range that is slowly being compressed to the downside as global economic strains mount. <\/p>\n<p>Whether the price continues to trend lower is a popular topic of debate among crypto analysts and the dominant opinion current points to further downside. <\/p>\n<h2><span class=\"ez-toc-section\" id=\"Analysts_will_stay_bearish_until_45000_is_reclaimed\"><\/span>Analysts will stay bearish until $45,000 is reclaimed<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>According to Blockware Solutions, there are a variety of indicators that point to a bearish outlook as long as BTC trades below the $45,000 to $47,000 dollar range.<\/p>\n<p>This includes the fact that Bitcoin started off 2022 at $46,200 while the 180-week exponential hull moving average, which gives more weight to recent price action, indicates that the moment for BTC is declining and currently sits at $47,166. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-05\/7caa0705-7e5a-4198-8cba-0bbdb0339e5c.jpg\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>BTC\/USD vs. 180-week exponential hull moving average 1-week chart. Source: Blockware Solutions<\/em><\/figcaption><\/figure>\n<p>Short-term hodlers, defined as those who have been in the market for less than 155 days, have been especially hard hit by the market weakness with the current short-term holder cost basis sitting at $45,038. <\/p>\n<p>Taken together, these data points suggest that the sentiment for BTC will remain bearish as long as the price is under $45,000. <\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>Bitcoin price approaches key support levels to avoid &#8216;cascade south&#8217;<\/em><\/strong><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Wheres_the_bottom\"><\/span>Where&#8217;s the bottom?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Despite the current doom and gloom analysis, there are a few signs that the market may be in the process of searching for a bottom. <\/p>\n<p><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/glassnode.substack.com\/p\/uncharted-16?s=r\">According<\/a> to the most recent Glassnode Uncharted newsletter, following the early May drop below $30,000 for Bitcoin, \u201cnetwork activity increased as more supply changed hands while the network shed value.\u201d <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-05\/94c5cdea-5b43-4a27-b45f-d8b04f5a9bc0.jpg\"><figcaption style=\"text-align: center;\"><em>Bitcoin entity-adjusted NVT. Source: Uncharted<\/em><\/figcaption><\/figure>\n<p>According to Glassnode, <\/p>\n<blockquote><p>\u201cThis phenomenon has historically signaled a great buying opportunity.\u201d<\/p><\/blockquote>\n<p>To further support the claim that Bitcoin is currently in a good buy zone, the report pointed to the entity-adjusted dormancy flow, which has been consolidating within an area that had previously been considered a optimal purchase zone. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-05\/a24fdda5-237a-48e5-8b5d-22e86d375cef.jpg\"><figcaption style=\"text-align: center;\"><em>Bitcoin entity-adjusted dormancy flow vs. Bitcoin entity-adjusted dormancy. Source: Uncharted<\/em><\/figcaption><\/figure>\n<p>Blockware Solutions, likewise, sees several data points that suggest the market may be in search of a bottom, including the Mayer Multiple, a metric that compares the current market price to the 200\u2013day moving average, which is currently \u201cnear some of the lowest readings on record.\u201d<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-05\/79c4eb1b-a66b-4533-acc4-08519a2b046c.png\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>Bitcoin Mayer Multiple. Source: Blockware Solutions<\/em><\/figcaption><\/figure>\n<p>While multiple data points confirm that the crypto market is in a bear market, there are indications that seller exhaustion may be reaching its limit and that the market is searching for a bottom. Where that will eventually be found remains unknown, but several indicators currently point to a solid level of support near the $21,000 level.<\/p>\n<p class=\"post-content__disclaimer\">The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.\n<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/p>\n<\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more News articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/on-chain-data-flashes-bitcoin-buy-signals-but-the-bottom-could-be-under-20k\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; On-chain data flashes Bitcoin buy signals, but the bottom could be under $20K &#8220; Every Bitcoin investor is searching for signals that the market is approaching a bottom, but the price action of this week suggests that we&#8217;re just not there yet.\u00a0 Evidence of this can be found by looking at the monthly return&#8230;<\/p>\n","protected":false},"author":1,"featured_media":453862,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDUvMjliYzAxNTgtYTBiOC00MjZiLTk2MGQtZTZiNmM5NzRjMDU5LmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74862,74937,74982,74863,74939,73785],"class_list":["post-453861","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-bitcoin","tag-bitcoin-price","tag-btc-markets","tag-cryptocurrencies","tag-market-analysis","tag-markets"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/453861","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=453861"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/453861\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/453862"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=453861"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=453861"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=453861"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}