The cryptocurrency market has experienced some significant turbulence during the past few days. The market leader Bitcoin increased from a low of $18,000 on September 7 to $22,000 last night (September 13). But since then, BTC has reversed course and is currently trading around the $20,300 mark. Bitcoin prices have decreased by about 10% since the Consumer Price Index data was made public.
The bitcoin market did not fare well with the CPI report. Inflation is at 8.3% year over year. It is more than the anticipated 8.1%, though. Even though the fundamental data is worse than anticipated.
History Need Not be Repeated
Famous cryptocurrency expert Willy Woo said that short-term holders have a lower cost basis than long-term investors during previous bottoms. He contends that the cryptocurrency market is almost there but not quite there.
He continued by pointing out that the same area where 2019 reached its bottom was where the crypto market finally capitulated in 2015. Woo hypothesized that the cryptocurrency market has not suffered as much as in prior years. He asserted that only 52% of the coins on the market are currently underwater. The most recent bottoms, however, were 61%, 64%, and 57%.
He said that this time, history need not be repeated. Up until this point, the On-chain has not been selected for future hedging. Woo does, however, imply that he is keeping an eye out for certain signals before rotation money turns back in. All of the previous bear crypto market bottoms saw a break in the supply in the profit trend line.
In addition, he said that it was important to estimate the buildup when coins are transferred from sellers to eager buyers. According to the data, the cryptocurrency market has not yet accumulated to the same degree as previous bottoms.
At the time of publication, the price of BTC was $20,190 and the coin is down by more than 2 percent. .
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