Bitcoin haters are ready to read BTC’s obituary, but on-chain data and other indicators suggest the current price range could be a good buy zone.

Like clockwork, the start of a crypto bear market has brought to light the “Bitcoin is dead” crowd gleefully proclaiming the end of the largest cryptocurrency by market cap.

Peter Schiff, Chief Economist & Global Strategist, on a Twit dated June 14, stated that, “If #Bitcoin can collapse by 70% from USD 69,000 to under USD 21,000, it can just as easily fall another 70% down to USD 6,000. Given the excessive leverage in #crypto, imagine the forced sales that would take place during a sell-off of this magnitude. USD 3,000 is a more likely price target.”

Indeed, the past few months have been painful for investors with BTC price falling to a new 2022 low of $20,100, but new calls for the asset’s demise are likely to suffer the same fate as the previous 452 predictions proclaiming its death.

Determined Bitcoiners have a bag full of tricks and on-chain metrics they use to determine when BTC is in a buy zone and now is the time to take a closer look at them. Next, we summarize what time-tested metrics say about Bitcoin’s current price action and whether the 2021 bull market was BTC’s last gasp.

Some Traders Always Buy Rebounds from the 200-Week Moving Average

One metric that has historically served as a solid level of support for Bitcoin is its 200-week moving average (MA), as market analyst Rekt Capital points out.

According to said analysis, the lows established in previous bear markets have occurred in areas close to the 200 moving average, which has effectively behaved as an important support level.

Most of the time, the price of BTC has had a tendency to briefly go below this metric and then slowly climb back above the 200-MA to start a new uptrend.

BTC price is currently trading right at its 200-week MA after briefly dipping below the metric during the early morning selloff on June 14. While this could be a move to the downside, history suggests that the price will not fall too far below this level for any extended period of time.

Multi-Year Price Supports Should Hold

Along with the support provided by the 200-week MA, there are also several notable price levels from Bitcoin’s past that should now function as support should the price continue to fall.

The last time BTC price traded below $24,000 was in December 2020, when $21,900 acted as a support level from which Bitcoin bounced before hitting $41,000.

If the $20,000 support fails to hold, the next support levels lie near $19,900 and $16,500.

MVRV Indicates It’s Time to Start Accumulating

A final metric that suggests BTC may be nearing optimal accumulation is the market value to realized value (MVRV) ratio, which currently stands at 0.969.

Most of the time over the last four years, Bitcoin’s MVRV score has remained above a value of 1, except for two brief periods that coincided with bearish market conditions.

The brief crash that took place in March 2020 saw the MVRV score hit a low of 0.85 and stay below 1.0 for a period of about seven days, while the 2018-2019 bear market saw the metric hit a low of 0.6992 and spent a total of 133 days below a value of 1.0.

While the data does not rule out that BTC could see a further price decline, it suggests that the worst of the pullback has already occurred and the current extreme lows are unlikely to persist in the long term.

By Audy Castaneda

 It is the first time the Bitcoin price has lost the all-time high of a previous market cycle to the downside. Fidelity Investments and JP Morgan consider that Bitcoin is below its ideal value, which leads some analysts to make bullish predictions.

Market analysts and investors feared that the price of Bitcoin (BTC) would break the USD 20,000 level. That finally happened, implying the breaking of a historical pattern for the cryptocurrency in the market.

The value of the cryptocurrency even fell to USD 18,700 for the first time since 2020. Even though it had a slight rebound, it is trading at around USD 19,165 per unit on exchanges, according to TradingView.

The drop in the price of Bitcoin is more than 6% compared to the opening of the daily candlestick. However, the value of the cryptocurrency has fallen by more than 27% of its market value over the last week.

Beyond being a relevant psychological mark, the USD 20,000 mark had great historical value for Bitcoin. That level was recently crucial as it was the limit set in the market cycle before the current one in the 2017 bullish run.

Once the Bitcoin price had broken the all-time high of a previous market cycle, it had never lost that mark to the downside. For that reason, the pioneering cryptocurrency is now in unknown territory with that new drop in its value.

In addition, the price of Bitcoin remains below the 200-week simple moving average (SMA), which has historically worked as significant support. Although it has broken that average before, there have been few precedents.

Possible rebound and bullish expectations

Bitcoin investors are currently fearful due to the bleak outlook for the cryptocurrency caused by its recent price drop. Various analysts had predicted the fall toward USD 19,000 and said the scenario would worsen once that movement was complete.

However, the price of Bitcoin has historically rebounded after briefly dropping below the 200-week SMA. The difference now is the breaking of the market cycle, which had never happened before.

Financial institutions Fidelity Investments and JP Morgan have recently assessed that Bitcoin is below its ideal value. In other words, it should be worth more than it is due to the current situation of the network. That has led some renowned analysts to make notable bullish predictions about the pioneering cryptocurrency.

According to a recent report on cryptocurrency adoption worldwide, the growth of Bitcoin is just beginning. Metrics from that study indicate that the price could reach USD 500,000 within the next decade. It is still a long way from that, with over 70% below its all-time high of USD 69,000 per unit in November 2021.

When writing this article, Bitcoin is trading at around USD 17,980 and has accumulated a 12.9% loss over the last 24 hours. While its daily trading volume is above USD 33.69 billion, its market capitalization is about USD 341.70 billion, according to CoinGecko.

By Alexander Salazar

Buterin believes that blockchain could help with goals like achieving trust and resistance to censorship and recovering information and passwords. He proposed the Negative Reputation to assign a negative note to some wallets to discourage bad behavior in their users.

Russian Canadian programmer Vitalik Buterin minted the Ethereum cryptocurrency when he was 21. The co-founder of the network recently shared his position on the use of blockchain for non-financial applications.

The executive thus proves his interest in using that technology beyond the field of cryptocurrency trading. He also noted that he could see the value of decentralized technologies in various worldwide situations while other industries have adopted them slowly.

Buterin believes blockchain technology could help with relevant goals such as achieving trust and resistance to censorship. The programmer proposed to use it as a data store that would allow recovering information and passwords.

The co-founder of Ethereum also commented on the potential use of blockchain for open-source metrics. That concept is still under development but would allow measuring the diversity and decentralization of the blockchain network.

The young entrepreneur stated that this voting mechanism would account for diversity, attaching a considerable weight to projects backed by different perspectives.

Negative Reputation and Modification of NFT Certifications in the Blockchain

Since Vitalik Buterin considers it necessary to neutralize honesty and bad behavior, he has proposed the modification of certifications. He mentioned the case of a university awarding NFT diplomas that finds out that a student has cheated on his exams. However, he has continued to use his certificate even though the educational institution revoked it.

To prevent that situation, Buterin suggests granting certifications or diplomas outside the blockchain but revoking them within it. Employers and interested parties could verify those credentials on the blockchain anytime.

Buterin said that the blockchain platform OpenCerts uses that technology to check the certifications of various institutes and universities.

He also proposed the so-called Negative Reputation, which would allow assigning a poor grade to some private wallets.

In theory, that proposal would help discourage unacceptable behavior in blockchain users. Buterin acknowledges the possibility that a negative reputation is the modern scarlet letter. However, he argues that giving little importance to bad behavior is not the right thing to do.

Buterin noted that he was very uncertain about the non-financial use of blockchain in those categories. However, he highlighted that no one should rule out this technology as an enabling tool in those areas.

The co-founder of Ethereum says it is possible to measure diversity and decentralization on the blockchain network. He thinks this would be relevant to determine the relevance of projects backed by a certain number of coins or even humans.

Ether (ETH) is trading at around USD 1,085 and has accumulated a 0.6% gain over the last 24 hours. While its daily trading volume is above USD 14.54 billion, its market capitalization is about USD 131.56 billion, according to CoinGecko.

By Alexander Salazar