BITCOIN ON-CHAIN CHARTS UPDATE
Bitcoin, after touching the $38k level, is now back to the $35k range. What’s going on with the charts? Let’s look at Bitcoin Golden Ratio Multiplier.
According to this chart, market cycle highs hit decreasing Fibonacci sequence multiples of the 350DMA. Hence when looking at the chart below, this metric could have been telling us that the run we had in early 2021 was already ‘the top’.
Now, we are currently under the 350DMA (orange line) which has historically been an indicator that we are entering a bear market. Please see previous cycles’ crossover below the orange line circled in red.
So if we are indeed entering a bear market, what should we do then?
Here’s what I thought, either: (1) DCA; (2) wait for a bottom signal; or (3) wait until it crosses back up above the orange line (see blue circles) where, historically again, showed Bitcoin back in the run towards a new all-time high.
On the other hand, we are seeing Bitcoin ASOPR or Adjusted Spent/Output Profit Ratio trying to get back above the 1.0 level.
Below 1 means people are selling at a loss. Over 1 indicates the majority of people are selling with-profits.
What are your thoughts on these charts? Comment down below.
For more charts relevant to market top readings, stay tuned. 😉
DISCLAIMER: THIS IS NOT FINANCIAL ADVICE.
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Elisa A.
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