The largest cryptocurrency by market capitalization, Bitcoin, may continue to drop in price, as data suggests that the global BTC floor may be set if some conditions are met.
https://twitter.com/BaroVirtual/status/1595083684620779522?t=7oEwrnTyrdJPRtnvEBu8rw&s=19
According to the findings of the market research firm Baro Virtual, the 2022 bear market is far from over as the figures have not matched historical downtrends. The firm contended that losses from $629M to $1.029B are still missing to ascertain complete capitulation.
https://twitter.com/BaroVirtual/status/1595083689897213953?t=MNYrCZVxcRAIbjv6aHDZgg&s=19
While there have been divergent views on where the price of Bitcoin will bottom out, analysts at Baro Virtual predicted a return to $14,000 or lower for BTC/USD.
The firm revealed that the analysed data were sourced from on-chain analytics platform Whalemap, emphasizing that the report was simply a product of arithmetic.
Baro Virtual juxtaposed moving profit and loss (MPL) figures and arrived at the position that macro BTC price bottoms only when transactions’ losses were equal to or more than the equivalent profits recorded in the preceding bull run.
Tough Roads Ahead for BTC
There is no mincing word that Bitcoin will have a lot of barriers to surmount before it can escape the bearish zone. Data from on-chain analytics firm Glassnode revealed that Bitcoin is close to its maximum losses vis-a-vis all-time highs (ATH).
Given the Baro Virtual’s projection, BTC targets 80% drawdown from its $69,000 ATH. So far, the digital assets have shed off 77% according to data from CoinMarketCap.
However, the latest findings corroborated the fact that the 2022 bear market is nowhere near 2014 and 2018 during which significant macro lows were recorded in Bitcoin amid halving cycles.
It was compiled that the percentage of BTC held in earnings is generally low, but not historically low relative to previous lows.
Meanwhile, Founder and CEO of Compound Capital Advisors Charlie Bilello remarked that Bitcoin’s 78% loss within the past one year is the largest since 2017-18.
