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- According to analyst Benjamin Cowen, BTC could be flashing a bottom signal.
- Amid rumors threatening to drop BTC to $13k, market participants are still long-term bullish.
While several foreboding rumors making the rounds in the crypto market have seen the price of Bitcoin (BTC) dump to less than $16,000, analysts are still confident that the pioneer digital currency could have reached a cyclical bottom.
According to popular crypto market analyst Benjamin Cowen, the BTC percentage of supply in profit and loss metric is flashing signs of a historical bottom for the asset.
He told his over 774,000 YouTube subscribers that the metric is one of his favorites as it shows the ebb and flow of the market during bear and bull markets. In previous years including 2011, 2014, 2015, 2018, and 2019 when this metric crossed over the 30-day moving average, it accurately marked the bottom of the BTC market.
One of my favorite on-chain indicators is the Bitcoin percentage of supply in profit and loss. The reason I like this one is because of how cyclical it looks – the ebb and flow of this indicator… If you apply the [30-day] moving average to [the Bitcoin percentage of supply in profit and loss]… what you’ll notice is that historically, they have always crossed before the bottom was in,
His analysis is coming at a time when the price of BTC has hit $15,800 for the first time since 2020. According to an analysis by Santiment, the drop was thanks to fear, uncertainty, and doubt (FUD) due to a lack of trust in exchanges, especially since the FTX exchange collapsed.
Exacerbating the situation is the roster of firms that have been run aground or are likely to suffer losses. One of these that have been rumored to be in trouble is Digital Currency Group (DCG), the parent company of Genesis and Grayscale.
Another FUD-creating event that is shaking the market is the movement of crypto assets in the wallet of the hacker of the FTX exchange. Blockchain security firm Chainalysis said in a tweet that the FTX hacker has been bridging ETH to BTC. The notice added that the asset is likely to be mixed as the hacker may attempt to cash out through exchanges.
🚨1/ Funds stolen from FTX are on the move and exchanges should be on high alert to freeze them if the hacker attempts to cash out
— Chainalysis (@chainalysis) November 20, 2022
Market analyst still sees a price explosion for BTC in early 2023
Amid the various speculations that BTC could drop to as low as $13,000, analysts are still long-term bullish for the benchmark crypto. Billionaire venture capitalist Tim Draper said in a recent interview that he still expects BTC to reach $250,000 by early 2023, sticking to his prediction from last year.
Draper said that he expects the price target to be reached once the market recovers from the massive FUD and people, especially women, start using Bitcoin for daily shopping. He noted that women’s interest in crypto is already showing signs of increasing, having recently grown from controlling 7.14 percent of Bitcoin wallets to 16.6 percent.