A veteran crypto analyst known for his accurate predictions is updating his technical forecasts for Bitcoin and Ethereum. The analyst looks at current on-chain metrics and says we are at the bottom of a bear market.
Peter Brandt says this news is the bottom mark
Accurately knowing Bitcoin’s correction in 2018, the analyst said the current state of the market is ‘uncertain’. Brandt is undecided as to whether we’re at the bottom or close right now. However, he said positive things for Bitcoin and Ethereum investors in his new tweets. He said that the apocalyptic theories he shared with The Economist and Bloomberg are the harbingers of the market bottom:
Such news comes when the market is at or near the bottom.
This is the type of news that comes at or near a major market bottom $BTC $ETH pic.twitter.com/DIPRpcx9Zn
— Peter Brandt (@PeterLBrandt) November 19, 2022
Over the past decade, countless news outlets have published hundreds of articles proclaiming the extinction of Bitcoin. 99Bitcoins has labeled BTC as worthless a total of 466 times, claiming that it is heading towards zero. Right now, as the effects of the FTX crash continue to spread across the market, investors are watching closely what happens to another centralized exchange, Genesis. As you follow on Kriptokoin.com, the stock market, which stopped its operations on Friday, reported that it sought $1 billion in cash from the company, which was later owned by Digital Currency Group (DCG).
What does on-chain data say about our proximity to the bottom?
On-chain metrics from analytics firm IntoTheBlock show that the market is approaching the bottom of the bear season. In his new analysis, Lucas Outumuro, head of research at IntoTheBlock, states that more than half of Bitcoin investors are losing money on their positions, a level not seen since March 2020. In the 2015 bear market, this figure peaked at 62% and reached 55% in 2018. Explaining Outumuro
Having a majority of investors in a coin that has gained 25,000% since its launch could be a sign that the downtrend has gone to extremes. In 2015, it took six months for the majority of handlers to make a profit again, compared to three months in 2018. Bear cycles seem to be shortening, and a smaller share of owners lose over time. This trend also supports the possibility of a potential bottom imminent.
Outumuro also notes that long-term investors are buying BTC amid the price woes of the crypto market. The amount of addresses holding BTC for more than a year has increased by 2.7 million BTC this year. His analyst interprets the data as follows:
Demand from long-term investors is slowly creating a backdrop for Bitcoin in bear markets, which often start selling to new investors shortly after their all-time highs.
Things happening around FTX slowed the pace
Outumuro also highlights that Bitcoin and Ethereum are leaving centralized crypto exchanges this week. According to the on-chain analyst, funds coming out of crypto exchanges point to distrust towards centralized platforms.
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