Historically accurate on-chain indicator suggesting Bitcoin (BTC) bottom is in, says analyst Benjamin Cowen
Closely followed crypto analyst Benjamin Cowen says a historically reliable on-chain indicator suggests the bottom for Bitcoin (BTC) is here or very near.
In a new interview with Kitco News, Cowen pulls out Bitcoin’s supply on profit and loss chart, which shows what percentage of BTC coins bring their holders a profit or loss.
The popular analyst says the supply of profit and loss metrics for BTC has historically coincided with long-term highs and lows.
Cowen also says that if BTC sees another leg down or perhaps a capitulation event, this indicator would strongly suggest the bottom is in.
“Some of the charts that I think are the most interesting are things like supply in profit and loss. One of the interesting things about this chart is that historically Bitcoin only bottoms after crossing. Until they cross.
They crossed yesterday. For the first time in this cycle, they crossed yesterday. And you can see a very cyclical pattern for bitcoin supply and profit loss here. The bottom occurs after they cross each other. When it comes up here, that’s generally when you want to scale as we continue to push these new all-time highs. To me, this is an indicator that would suggest that if we took another leg down, there would be plenty of evidence that could be the big bottom.
That’s one of the indicators we could look at.”
Credit: Benjamin Cowen/YouTube
At the time of writing, Bitcoin is changing hands at $21,673, up about 10% over the past seven days.
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