Bitcoin, Ethereum and Altcoins show signs of incoming price reversal; Here’s when

According to the MVRV divergence, analysis company on the chain Sanitation suggests that Bitcoin, Ethereum and other altcoins are currently “overbought”.

📊 One of @santimentfeed‘s most popular calculations, MVRV, indicate that short-, medium- and long-term trading returns are on ‘pain’ thresholds that historically herald future price reversals. When this turning operation will take place, it is more challenging to identify. pic.twitter.com/65s1EPITTA

– Santiment (@santimentfeed) July 2, 2022

According to the analysis company on the chain, these cryptocurrencies have reached the historical MVRV level, where a price reversal can be expected to alleviate current losses, although it is difficult to predict when this will happen.

Several flooring indications are currently flashing for Bitcoin, according to Glassnode. But given the current macroeconomic environment, all models and historical precedents can 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 an all-time low and coincide with the development of the bear market floor in previous cycles, it is still difficult to find the bottom in the bear market at this time.

As a general rule, trading volume is highest when markets capitulate, and such capitulation creates large bottoms.

This weekly chart includes the aggregate bitcoin volume for most BTC pairs (spot & perpetuals across exchanges).

The volume reached its record high two weeks ago. pic.twitter.com/6ONLibQiL2

– Alex Krüger (@krugermacro) July 2, 2022

Cryptoanalyst and economist Alex Kruger believes that Bitcoin may have capitulated during the market downturn two weeks ago. The analyst stressed the fact that trading volumes reached a peak at this point, indicating capitulation, which provides significant bottoms.

113,884 BTC purchased by retailer in 2022

Small holders continue to accumulate aggressively $ BTC

Addresses that hold <1 $ BTC has increased its balance in 2022 at a remarkable pace.

Since January 1, they have added 113,884 BTC.

Diagram: pic.twitter.com/zh1tPvR19B

– IntoTheBlock (@intotheblock) July 1, 2022

According to the analysis company IntoTheBlock on the chain, small Bitcoin holders are still gathering aggressively. BTC addresses that own less than 1 BTC have accumulated their holdings in 2022 at an impressive rate, adding 113,884 BTC.

According to Glassnode data, this group of holders has seen an increase recently, reaching a new high. According to the blockchain data company, there are currently 3,662,897 addresses with more than 0.1 Bitcoin.

Bitcoin is trading at $ 19,274 at the time of press.