Although the majority of the cryptocurrency market is still struggling to get out of the sluggish trading loop that followed the FTX collapse, the bearish times may represent an opportunity for late newcomers and fresh starters who are trying to accumulate Bitcoin (BTC).
Indeed, an area of intersection between supply loss and profit, in which Bitcoin is standing at the moment, might be the perfect area to ‘accumulate for a fresh start,’ as per an analysis published on November 29 by BinhDang, a member of the crypto analytics platform CryptoQuant.
Four cycles of intersection
As the analyst explained:
“Over nearly 13 years, with four cycles, we have all noticed an area of intersection between supply loss and profit every time the price is in the bottom zone. Even in the early stages, when Bitcoin was valued at only a few dollars, this area existed.”
In terms of this bear season, BinhDang said that “it was only when the price dropped to the current level that I saw this intersection area appear,” citing the total circulating supply of 19,219,377 BTC, of which ‘supply and loss’ accounts for 53% (10,196,728 BTC), and ‘profit supply’ for 47% (9,016,619 BTC).
As the expert specified:
“The existence of this area will be long enough for the market to calm down after the hurt, and the price can go down more few percent, but this is undoubtedly the best area to accumulate for a fresh start.”
Bitcoin price analysis
Meanwhile, the price of Bitcoin at press time stood at $16,490, recording modest gains of 1.72% on the day and 4.98% across the week, whereas its loss on the monthly chart amounted to 20.48%, according to the data retrieved by Finbold on November 29.
Notably, Bitcoin’s current pattern of sideways trading could just be the calm before the storm, as multiple technical analysis (TA) indicators have suggested that the flagship decentralized finance (DeFi) token could be in for a major upward move in 2023.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.