Bitcoin Prepares For A significant Decrease In 2023, Says Analyst Wenry
Key Points:
- Bitcoin had fallen far from the Realized Price of $21,107 that it had at the beginning of November, just before FTX’s crash.
- Wenry came to the conclusion that the price, which was $19,809 at year’s end, was an obvious indication that the bear market remained.
Investors might need to pause after evaluating the expected investing patterns for Bitcoin [BTC] in 2022 before diving any farther into the BTC pool. Bitcoin owners should prepare for a significant decrease in value in 2023, says CryptoQuant analyst Wenry.
BTC traded at a two-year low at the start of the 2023 trading year at its December 2020 price range. As of this writing, according to data from Coincu, BTC was trading for $16,547.08.
Based on an evaluation of a few on-chain measures, Wenry came to his conclusion. These included a comparison of BTC’s spot trading volume and derivative trading volume, as well as its realized price and MVRV ratio.
BTC finished 2022 with a Realized Price of $19,809, according to Wenry. Thus, he pointed out that BTC had fallen far from the Realized Price of $21,107 that it had at the beginning of November, just before FTX’s crash.
The Realized Price is a measure that shows the typical price at which Bitcoin has been purchased during a specific time period. The metric provides information about the general market climate and Bitcoin demand.
Wenry came to the conclusion that the price, which was $19,809 at year’s end, was an obvious indication that the bear market remained.
Wenry discovered after examining BTC’s MVRV ratio that BTC has not been able to get out of the undervalued portion appreciably after Terra-Luna failed.
Investment sentiment is still very low, and the attractiveness of low-priced purchases is also declining as time goes by, which is a double whammy.
Wenry also made some observations on the volume of BTC’s spot and derivative exchanges. He claimed that the bearish market circumstances in 2022 revealed the dangers of the massive leverage trading that took place in the bull market between 2020 and 2021. As a result, the amount of BTC derivative and spot trading on exchanges decreased.
In short, during the bull market in 2021, when the spot trading volume was 1, the derivative trading volume rose to the 7-10, whereas the current trading volume has shrunk to the 2-3.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join us to keep track of news: https://linktr.ee/coincu
Website: coincu.com
Thana
Coincu News
Author
Key Points:
- Bitcoin had fallen far from the Realized Price of $21,107 that it had at the beginning of November, just before FTX’s crash.
- Wenry came to the conclusion that the price, which was $19,809 at year’s end, was an obvious indication that the bear market remained.
Investors might need to pause after evaluating the expected investing patterns for Bitcoin [BTC] in 2022 before diving any farther into the BTC pool. Bitcoin owners should prepare for a significant decrease in value in 2023, says CryptoQuant analyst Wenry.
BTC traded at a two-year low at the start of the 2023 trading year at its December 2020 price range. As of this writing, according to data from Coincu, BTC was trading for $16,547.08.
Based on an evaluation of a few on-chain measures, Wenry came to his conclusion. These included a comparison of BTC’s spot trading volume and derivative trading volume, as well as its realized price and MVRV ratio.
BTC finished 2022 with a Realized Price of $19,809, according to Wenry. Thus, he pointed out that BTC had fallen far from the Realized Price of $21,107 that it had at the beginning of November, just before FTX’s crash.
The Realized Price is a measure that shows the typical price at which Bitcoin has been purchased during a specific time period. The metric provides information about the general market climate and Bitcoin demand.
Wenry came to the conclusion that the price, which was $19,809 at year’s end, was an obvious indication that the bear market remained.
Wenry discovered after examining BTC’s MVRV ratio that BTC has not been able to get out of the undervalued portion appreciably after Terra-Luna failed.
Investment sentiment is still very low, and the attractiveness of low-priced purchases is also declining as time goes by, which is a double whammy.
Wenry also made some observations on the volume of BTC’s spot and derivative exchanges. He claimed that the bearish market circumstances in 2022 revealed the dangers of the massive leverage trading that took place in the bull market between 2020 and 2021. As a result, the amount of BTC derivative and spot trading on exchanges decreased.
In short, during the bull market in 2021, when the spot trading volume was 1, the derivative trading volume rose to the 7-10, whereas the current trading volume has shrunk to the 2-3.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join us to keep track of news: https://linktr.ee/coincu
Website: coincu.com
Thana
Coincu News
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