The Bitcoin price struggle continues as the major cryptocurrency has yet to break above the key resistance zone at $70,000, indicating the market remains at risk of a deeper correction. Popular market analyst Yonsei_dent has shared an observation in particular that supports the expectations of these bearish investors. Related reading: Bitcoin ETF Investors Show Diamond Hands: Only $6.5 Billion in Outflows Since October 10 Bitcoin Supply in Earnings Stat Shows Potential Loss of 75% In a Quicktake post on CryptoQuant, Yonsei_dent identified a potential price bottom of the current market cycle given the collapse in recent months. Since October, the leading cryptocurrency has lost more than 45% of its market value, with prices falling to $60,000 from a record high of $126,000. Using the Supply In Profit on-chain indicator, Yonsei_dent maps the possible size of Bitcoin’s price decline in the lower zone, based on historical cycle declines. For context, the supply in profit measures the portion of total circulating Bitcoin whose current market price is higher than the price at which those coins last moved. It is an important cycle indicator, as the profit supply approaches extreme highs as the cycle top approaches, and compresses sharply as the cycle low approaches. Yonsei_dent explains that the duration of Bitcoin Supply in Profit in the lower zone in 2022 was six months. During this market cycle, Bitcoin initially hit an all-time high of $69,000 before crashing 77% to around $15,500. If the same length of the lower phase is placed on the current price chart, it represents a 70%-75% price drop for the current market cycle, according to the market analyst. In this case, Bitcoin is expected to find a low price within a range of $31,500 – $38,000, indicating a further potential decline of 41%-51% from current market prices. Related Reading: Ethereum Market Order Imbalance Hits Record Negative: $1,850 Is Now the Line in the Sand Bitcoin Price Chart At the time of writing, Bitcoin is trading at $63,553, having lost 5.84% in the past 24 hours. Meanwhile, daily trading volume has increased by just under 0.54% and is valued at $40.04 billion. The leading cryptocurrency also reports a negative performance on the weekly and monthly charts, with losses of 6.21% and 27.11% respectively. Unless market bulls convincingly regain the long-term resistance at $70,000, market sentiment is likely to remain fragile and prices will be vulnerable to further downside or prolonged consolidation in the near term. Featured image from Unsplash, chart from Tradingview
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