Bitcoin Could Fall to Unseen Lows, Analysts Warn
Despite the belief that the 2022 bear market is over, recent market movements have analysts speculating that bitcoin could experience a significant drop to lows not seen in years. Two key metrics that could forecast this potential downturn are the Volume Weighted Average Price (VWAP) and the Volume Profile Visible Range (VPVR).
Main Breakdown:
- BTC became the best-performing asset of 2023, surging to $30,000 before experiencing a retracement.
- Analysts warn that bitcoin may still be in a precarious position.
- Jake Wujastyk highlights that BTC is currently in the November 2022 VWAP zone, which could provide some level of support.
- However, the VPVR metric suggests that bitcoin could plummet all the way down to $12,500.
- Crypto analyst Jesse finds the VPVR to be highly reliable in certain situations and has experienced significant gains using it.
Hot Take: While it’s uncertain whether bitcoin will reach such lows, the warnings from analysts showcase the potential volatility of the cryptocurrency market. Investors should remain cautious and keep a close eye on these key metrics to make informed decisions.
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