According to the data analysis company within the Santiment network, signs of the return of the price of Bitcoin, Ethereum and altcoins have been observed in the MVRV index.
MVRV index is one of the best on-chain analysis tools. This index is used to discover the price floor and ceiling of Bitcoin. According to Santiment data, the MVRV index is currently in oversold territory.
Read more: The future of digital currencies in 2022
The possibility of the return of the price of Bitcoin, Ethereum and altcoins
According to the data of Santiment analysis company, Bitcoin, Ethereum and altcoins have reached the historical level of the MVRV index. At this point, a price reversal is expected to compensate for the current losses. Of course, it is difficult to predict the exact time of this price return.
According to Glassnode, several indicators within the network predict a positive situation for Bitcoin. Given the current macroeconomic environment, all models and historical records may be tested while determining the bottom of the bear market for Bitcoin.
At present, Bitcoin’s macro indicators, such as technical and chain indicators, are at their lowest level. These indicators are aligned with the bottom of the bearish market in previous cycles. It is still difficult to identify the bottom of the bear market at this stage.
Alex Kruger, a well-known analyst and economist, believes that Bitcoin may have succumbed during the market downturn of the past weeks. Krager believes that the volume of transactions has reached its peak in this period of time, which shows the weakness of Bitcoin.
According to IntoTheBlock, small holders of Bitcoin are still piling up. Bitcoin addresses with less than 1 Bitcoin added 113,884 Bitcoins to their holdings in 2022.
According to Glassnode data, the number of wallets containing one bitcoin or less has increased significantly. Currently 3,662,897 wallets in the world have a balance of at least 0.1 Bitcoin.
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