Drop Signal in Bitcoin Before ATH: Investors Should Pay Attention!
Analysts announced the critical data that should be examined before the new peak in Bitcoin (BTC).
The analyst of on-chain analysis platform CryptoQuant examined the remarkable data in Bitcoin. Commenting on data such as Reserve Risk Indicators, VOCD and MVOCD, the analyst discussed the confidence level and investment decisions of Bitcoin holders according to the current price.
He emphasized that historically, MVOCD has been an important validator for local tops and bottoms in the Bitcoin price. He emphasized that the last bearish signal for Bitcoin came in the period from the end of March to the beginning of April, and reminded that Bitcoin has not been able to reach a new peak since then.
On the other hand, he stated that after this decline signal in 2017-2018 and 2021, a local bottom was seen and the price climbed to the new ATH:
Of note, there were two bearish signals from 2017 to 2018 and a bearish signal in 2021 before the historical peak. So while this combination of metrics is effective, there is a possibility of new all-time highs depending on how the on-chain data adjusts to the behavior of long-term investors.