Bitcoin’s (BTC) bid-to-earnings indicator falls to levels that could be signaling the end of the bull market, says pseudonymous analyst @Yonsei_dent at CryptoQuant Insights. Amid a painful BTC price decline, its “Fear and Greed” index reached September 2023 levels.
Bitcoin’s (BTC) Supply-in-Profit indicator is falling to levels that could be signaling the end of the bull market, says pseudonymous analyst @Yonsei_dent on CryptoQuant Insights. Amid a painful BTC price drop, his “Fear and Greed” index hit September 2023 levels.
Bitcoin (BTC) Profit Rate Bid Hints at Possible Arrival of a Bear Market
Based on the performance of past cycles, it appears that a major market bull phase will last a minimum of two more months. This statement was made by an on-chain analyst who goes by @Yonsei_dent on X (formerly Twitter) and posted by Cryptoquantitative Perspectives series.
These estimates are based on the performance of the Supply in Profit indicator in previous cycles. This metric demonstrates the percentage of the circulating BTC supply that is in a profitable position. The CryptoQuant analyst investigates the long-term moving average (1500 DMA) for the indicator, with a standard deviation (SD) of ±1.
Typically, the indicator goes through three deep corrections (30-40%) per bull market. In the current bull run, it already saw a 21% drop in May, while the current price drop wiped a further 16% off BTC’s value.
The writer shared an alarming conclusion for Bitcoin (BTC) bulls regarding the largest cryptocurrency’s prospects in Q3 2024:
Compared to previous cycles, it appears that there are still at least two more months left in the main phase of the bull market. It is intriguing to see if there will be another significant rise after this correction. If the bid in earnings falls below +0.4 SD and approaches the 1,500 DMA, it may indicate the beginning of a bear market.
At the time of publishing, Bitcoin (BTC) price is attempting to hold above the $61,500 level, falling nearly 17% compared to its March 2024 high.
Bitcoin (BTC) Fear and Greed Index Falls to 10-Month Low
Last week, the orange coin lost 5% of its value on news of the start of the Mt. Gox offset program that could trigger selling pressure this July.
Such uncertainty resulted in the rapid decline of the Bitcoin Fear and Greed Index. Today it fell to 30/100, which can be called the “fear” zone.
In its fastest drop since the FTX collapse, the Bitcoin Fear and Greed Index lost more than 60% in a week. The metric has not been this low since mid-September 2023.
