1- Price Drawdown: We have seen a drop of approximately -30% from the 70K level. After this decline, a possible correction could be initiated. When we previously examined the metric, we observed where and how it reacted. It experienced a very solid drop by surpassing its 1-year average. This is the first time in the last 8 months that it has experienced such a sharp decline.
2- Futures Open Interest Percent Change Oscillator: This metric shows us how much the open interest has cooled down and how many positions have been closed sufficiently. The closing of these positions could signify the start of a possible correction wave. We can say that the hype on the open interest side has ended and we have reached a potential support area.
3- 90-Day Market vs. Realized Price: This metric compares the realized price of the last 90 days with the current price. If the market price rises faster than the realized price, it supports the upward trend. However, if the market price is lower than the realized price, this metric supports a decline. Possible reaction zones are marked on the metric. Reactions are likely to occur at these levels. In other words, we are close to entering a retracement phase.
4- Quarterly Performance: Looking at the quarterly performance, it has shown quite poor performance for the past 4 months.
Conclusion: After a -30% drop in Bitcoin, some metrics indicate a possible bottom area. The general market, political reasons, and situations like war have significantly negatively affected the markets. While the overall outlook can still be considered positive, some problems are likely to continue in the short to mid-term. We are close to a possible bottom area, but there is still no strength in the price. If the selling pressure decreases and it starts to gain strength, a reversal can be expected.
Written by XBTManager
