While many believe the 2022 bear market is over, bitcoin recently dumped further south, and now some analysts are speculating that the asset could fall to lows unseen for years.
The metrics that could forecast this are the Volume Weighted Average Price (VWAP) and the Volume Profile Visible Range (VPVR).
- Recall that BTC became the best-performing asset of 2023 when it shot up to $30,000 earlier this year, as it almost doubled its price in several months.
- However, the momentum disappeared shortly after, and the cryptocurrency fell back down to a multi-month low of $25,300 earlier in August.
- While that was a painful retracement of its own, crypto analysts on X (Twitter) warned that the asset might not be out of the woods yet.
- Jake Wujastyk said BTC has dropped to the November 2022 VWAP zone but still remains above it. VWAP works similarly to the Realized Price metric as it determines the average price at which investors have bought their holdings.
- That’s the positive news. The negative scenario could take bitcoin all the way down to $12,500, according to the Volume Profile Visible Range (VPVR) – a metric used for volume trading, which another crypto analyst believes is “very reliable” on certain occasions.
I would even say there’s no real strong volume level support in that range till Bitcoin $BTC hits $12,500.
Personally, I find the VRVP to be VERY reliable when the row size is set to 1000.
Up over 400% this year using it. 🙂 pic.twitter.com/UgKx9uAOib
— Jesse (@Micro2Macr0) August 22, 2023