3 Historically Accurate Bitcoin On-Chain Metrics Blink “Bottom”

Bitcoin's key indicators tracking its market against its fair value, along with long-term holder confidence, suggest formation market dips. Market analysis

Bitcoin (BTC) and other riskier assets fell on October 21 as traders scrutinized macro indicators suggesting the Federal Reserve would continue to hike rates. Nevertheless, the BTC/USD pair remains in the price range of $18,000 to $20,000, which shows a strong bias conflict in the market.

BTC price has been holding above $18,000 since June

Notably, the price of BTC has not been able to dive any deeper below $18,000 since it first tested the support level in June 2022. As a result, some analysts believe that the cryptocurrency is bottoming out, given that it has already corrected more than 70% from its all-time high of $69,000, set almost a year ago.

BTC/USD daily price chart. Source: TradingView

"During the 2018 bear market, BTC experienced a maximum decline of 84%, lasting 364 days, while the 2014 cycle lasted longer long, bottoming out after 407 days," Arcane Research noted in its weekly crypto market report, adding:

"The two lows were followed by unusually low volatility."

Bitcoins historical withdrawals. Source: Arcane Research

Furthermore, a flurry of widely watched on-chain Bitcoin indicators also hint at a potential bullish reversal ahead. Let's look at some of the most historically significant metrics.

Bitcoin MVRV-Z Score

The MVRV...