Legendary Analyst is Back: He Shared Historical Bitcoin Chart!

Bitcoin: Murad Mahmudov of Adaptive Capital shared a critical Bitcoin chart. The analyst had previously correctly predicted the 2018 crypto winter. Now it’s back on the field with a Bitcoin chart that no one expected.

A way to take a closer look at Bitcoin (BTC)

The table provided by Mahmudov is somewhat unique as he compares Bitcoin to the USD divided by the sum of the US money supply and the dollarized European money supply. The chart provides more information about Bitcoin’s movement compared to the money supply totals.

The newly created chart shows that Bitcoin has reached a massive bottom for the fourth time. Previously, BTC to monetary supply chart worked perfectly. It also predicted almost every jump and peak starting in 2014.

The new price model predicted a global bottom in 2013, 2015 and 2020 and global highs in 2014, 2018 and 2021. In addition to global highs and lows, the chart shows pre-global release reversal points. This means that Bitcoin will reach its peak of $ 69,000. Bitcoin reached this level in November of last year. It has been maintaining a downtrend ever since. He took the biggest and final blow in the Terra crisis. Now new technical patterns are forming again for the uptrend.

However, price patterns are becoming less accurate

Unfortunately, the price models used by the crypto market in the age of the industry are not always accurate. It is not as relevant as it used to be, especially after we saw that PlanB’s stock-to-flow model failed to capture Bitcoin’s latest moves. Earlier, Vitalik Buterin, the creator of the second largest cryptocurrency in the market, expressed his concerns about following various price patterns in the cryptocurrency market as they lost their relevance.

The newly presented price model for Bitcoin has also faced a lot of criticism. It is also seen as the reason for its decline after losing more than 70% of its value. It was dubbed the “coping” as the overall market sentiment remained negative.

How is Bitcoin resisting selling pressure?

According to the latest statistics from Arcane Research, Bitcoin miners had to sell on the decline. Unlike the typical 20-40% in April, this time he sold his BTCs in May. Thus, Public BTC mining companies divested 30% of their production in the first four months of 2022. It is estimated that this rate tripled in May and will rise even more in June.

The miners-to-currency flow rate hit a 7-month high as the bitcoin price dropped below $21,000. Many miners have become unprofitable due to the drop in BTC price. It also caused miners to exit the cryptocurrency market. All in all, it hints at what’s more to come as the Bitcoin price drops below $20,000.

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Larry Brown

I graduated from Yale University, Department of Television. I have been a professional news writer for 3 years. I am continuing my career here by establishing amknews.com site 3 months ago.