Historically accurate chain indicator suggesting Bitcoin (BTC) bottom is in, says analyst Benjamin Cowen
Closely followed cryptoanalyst Benjamin Cowen says a historically reliable on-chain indicator suggests the bottom is here or very close for Bitcoin (BTC).
In a new interview with Kitco News, Cowen breaks down Bitcoin’s supply in a profit and loss chart, which shows what percentage of BTC coins bring their holders profit or loss.
The popular analyst says that the P&L offer for BTC has historically coincided with long-term tops and bottoms.
Cowen also says that if BTC sees another leg down or perhaps a capitulation event, this indicator will strongly suggest that the bottom is in.
“Some of the charts that I find most interesting are things like the profit and loss offering. One of the interesting things about this chart is that Bitcoin historically does not bottom until after they have crossed. Until after they cross.
They crossed yesterday. For the first time this cycle they crossed yesterday. And you can see a very cyclical pattern here for the Bitcoin supply and profit loss. The bottom occurs after they cross each other. When it comes up here, usually the time you want to scale out is when we continue to push the new all-time highs, so to me this is an indicator that if we got another leg down, there’s a lot of evidence which can be the biggest bottom.
This is one of the indicators we can look towards.”
At the time of writing, Bitcoin has changed hands for $21,673, up around 10% in the past seven days.
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