Predicting the tops and bottoms of Bitcoin - in a macro sense - is not that easy. But some indicators can give us a clue or kind of sense of caution warning when to exit or enter the market.
One of them is the "MVRV Z" indicator. It is a chart indicator that uses blockchain analysis to identify periods where BTC is extremely over or undervalued relative to its "fair value".
Historically it has been very effective in identifying periods where market value is moving unusually high above realised value. It also shows when market value is far below realised value, highlighted by the green lines. Buying Bitcoin during these periods has historically produced outsized returns.
This chart indicator is generally useful for predicting Bitcoin price at the extremes of market conditions. It is able to forecast where price may need to pull back when the score enters the upper red hot periods and also when price may rally after spending time in the lower green band.
Historically it has picked major Bitcoin price highs to within 2 weeks.
So far BTC has done a great job holding in the middle value band. It's in the stage of taking the next leap breaking out of it to the upside completing the bullmarket, also referring to past historical breakouts which happenend in similar fashion after a long lasting bearmarket.
One of them is the "MVRV Z" indicator. It is a chart indicator that uses blockchain analysis to identify periods where BTC is extremely over or undervalued relative to its "fair value".
Historically it has been very effective in identifying periods where market value is moving unusually high above realised value. It also shows when market value is far below realised value, highlighted by the green lines. Buying Bitcoin during these periods has historically produced outsized returns.
This chart indicator is generally useful for predicting Bitcoin price at the extremes of market conditions. It is able to forecast where price may need to pull back when the score enters the upper red hot periods and also when price may rally after spending time in the lower green band.
Historically it has picked major Bitcoin price highs to within 2 weeks.
So far BTC has done a great job holding in the middle value band. It's in the stage of taking the next leap breaking out of it to the upside completing the bullmarket, also referring to past historical breakouts which happenend in similar fashion after a long lasting bearmarket.