Bitcoin’s price struggles continue as the main cryptocurrency has yet to break above the key $70,000 resistance zone, suggesting the market remains at risk of a deeper correction. It is worth noting that popular market analyst Yonsei_dent shared an observation that confirms investors’ bearish expectations.
Bitcoin supply in the profit metric shows a potential decline of 75%.
In Quick post on CryptoQuant Yonsei_dent has identified a potential price low in the current market cycle given the crash in recent months. Since October, the leading cryptocurrency has lost more than 45% of its market value, with prices falling to just $60,000 from an all-time high of $126,000.
Using the supply chain in profit indicator, Yonsei_dent maps the possible range of Bitcoin price decline in the lower zone, based on historical down cycle periods. For context, yield supply measures the portion of the total circulating Bitcoin whose current market price is higher than the price at which these coins last traded.
This is an crucial cycle indicator because the supply of profit approaches extreme highs near cycle highs and contracts sharply near cycle lows. Yonsei_dent explains that the duration of the Bitcoin supply in the lower zone profit in 2022 was six months. During this market cycle, Bitcoin initially hit an all-time high of $69,000 before falling 77% to around $15,500.
According to the market analyst, if the same length of the lower phase is placed on the current price chart, it implies a price decline forecast of 70%-75% for the current market cycle. In this case, Bitcoin is expected to find a low price in the range of $31,500-$38,000, suggesting a further potential decline of 41-51% from current market prices.
Bitcoin price overview
At the time of writing, Bitcoin is trading at $63,553 after losing 5.84% in the last 24 hours. Meanwhile, daily trading volume increased by a modest 0.54% and is valued at $40.04 billion. The top cryptocurrency is also seeing negative results on its weekly and monthly charts, with losses of 6.21% and 27.11% respectively. Unless market bulls convincingly recapture the long-term resistance at 70,000. dollars, market sentiment is likely to remain volatile and prices will be susceptible to additional declines or prolonged consolidation in the near term.
