Bitcoin bottom-fishing strategy: 7 key indicators teach you how to bottom-fish Bitcoin!
In a volatile market, should you bottom-fish? Falling to panic, is the bull market still there? In order to better analyze the current trend, I have compiled 7 BTC bottom-fishing indicators:
1) Ahr999 Index: This is an indicator that combines the short-term fixed investment yield of Bitcoin and the deviation between price and expected valuation.
When the index is lower than 0.45, it is recommended to bottom-fish; when it is between 0.45 and 1.2, it is recommended to buy fixed investment; when it is higher than 1.2, the coin price is high and not suitable for operation.
The current index is 0.6, which is in the fixed investment range.
2) Rainbow chart indicator: Display market sentiment through different color bands, and colder colors indicate low market sentiment, which is suitable for buying.
The current Bitcoin price is in a colder range, which is suitable for buying.
3) Relative Strength Index (RSI): Used to judge market trends. RSI greater than 70 indicates overbought and may fall; less than 30 indicates oversold and may rise.
The current RSI is 58.41, which is not yet in the bottom-fishing range.
4) Two-year moving average multiplier indicator: Use the two-year moving average (2YMA) and its 5-fold product to evaluate buying and selling opportunities. When the price is lower than the 2YMA, it is at a historical low and suitable for bottom-fishing; when the price is higher than the 2YMA x5, it is at a historical high and suitable for selling.
The current Bitcoin price is in a neutral range.
5) Unrealized net profit/loss indicator (NUPL): Assess market sentiment by calculating the unrealized profit or loss of all holders. When NUPL is less than 0, the market is losing money and suitable for bottom-fishing; between 0 and 0.25, it is slightly profitable and also suitable for buying.
The current NUPL is 45.33%, which is not the best buying range.
6) Realized value HODL ratio (RHODL Ratio): Measure market activity and speculation by comparing the number of Bitcoins held by short-term and long-term holders. A high value indicates that the market is highly speculative; a low value indicates that the market is stable.
The current ratio is 2689.22, which is in a neutral range.
7) MVRV indicator: compares the ratio of circulating market value to realized market value to reflect the profitability of holders. When MVRV is greater than 3.5, the market may reach the top; when it is less than 1, the market may reach the bottom.
Currently, MVRV is 1.83, and the market has not entered the bottom range.
