The BTC Price Could Soon Bottom Around $20k! On-Chain Hints Buy Zone For Bitcoin

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As the market is moving towards a more bearish trend, every Bitcoin investor is cautiously watching the indications that are pointing towards a bottom, but the price movement this week suggests that we aren’t there yet.

The most recent Blockware Solutions Market Intelligence Newsletter discovered evidence of this by looking at the monthly return for Bitcoin (BTC), which was hit with a quick decrease that “converted to one of the greatest pullbacks in monthly returns for the asset class in its history.”

As global economic constraints build, Bitcoin continues to move within an increasingly limited trading range that is steadily being squeezed to downward. 

The question of whether the price will continue to fall is a hot issue among crypto experts, and the current consensus is that it will.

No Bitcoin Bull Run Until $45,000

As long as BTC trades below the $45,000 to $47,000 dollar area, according to Blockware Solutions, a number of indications point to a gloomy outlook. 

This is based on the fact that Bitcoin started 2022 at $46,200, but according to the 180-week exponential hull moving average, which gives current price moments more weight, points that for Bitcoin, the current price action is falling and hence, at the moment the currency is positioned at $47,166.

According to the short-term holder, the traders who have traded for less than 155 days, are the ones who have been hit hard by the market crash with the current cost basis for short-term holders resting at $45,038.

These statistical points, taken together, show that BTC sentiment will stay pessimistic as long as the price remains below $45,000.

Market In Search Of Bottom?

Though the current analysis is pessimistic, the indications still depict that the market is looking for a bottom.

Following the early May plunge below $30,000 for Bitcoin, “network activity accelerated as more supply changed hands but the network lost value,” according to the latest Glassnode Uncharted newsletter.

“This moment is one of the great buying opportunities in history,” claims Glassnode.

The research cited the entity-adjusted dormancy flow, which has been consolidating inside an area that has previously been regarded as an optimum buying zone, to back up the conclusion that Bitcoin is presently in a favorable buy zone.

On the other hand, Blockware Solutions looks for the data points which show the market is in search of the bottom which also has Mayer Multiple, the metric which compares the present market price to the 200-day moving average, which now stands somewhere around the lowest readings on record.

While several data indicators suggest that the crypto market is in a bear market, there are signs that seller tiredness is nearing a limit and the market is looking for a bottom. It’s unclear where that will be located, although multiple signs now indicate a strong level of support near $21,000.