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Three reasons why you shouldn’t believe the bear scenario for BTC in 2022

2 min read

Which direction will be selected by BTC and the whole crypto market? This is a question that none of us know the answer to. However, in this article, we will show three reasons why bulls could win.

BTC jumps on the bull wave

In the short term BTC recorded a decline, but for a long time we are still in a bullish setting. This is also confirmed by three important metrics on the chain, which suggest an optimistic scenario.

The first indicator is a 365-day model of market value to realized value, the so-called MVRV. This indicator represents a view of the mood of investors at a given point in time. It can be used to assess the average profit or loss of traders who have purchased BTC during the last year. The main advantage of this indicator can be considered that it can determine quite accurately when the sale will take place, but also when we should focus on growth. Company Health states that if the value is less than -10% this is the stage when short-term investors sell at a loss and long-term investors accumulate.

So we are talking about the so-called “Zone of opportunity”. However, the opposite is also true, which shows that the sellers are in profit and are likely to sell in order to realize their profits. Currently, the MVRV value is zero, so traders are not profitable. So in the case of BTC, there is still plenty of room to move down until there is some bear sale.

Three reasons why you shouldn't believe the bear scenario for BTC in 2022

MVRV indicator. Source: Santiment

Another important indicator that long-term investors should pay attention to is the distribution of the supply of whales held by BTC. Since June 2021, there has been a significant increase in the number of investors who intend to from 1,000 to 10,000 BTC. Currently, this number has risen to by 6.5%. This factor may indicate that large players are ready for BTC growth.

Three reasons why you shouldn't believe the bear scenario for BTC in 2022

Increase in the number of BTC whales. Source: Santiment

The last indicator is the outflow of BTC from exchanges, which shows that since March 2022, a total of 100,000 BTC which basically dispelled fears of a bigger sale.

Three reasons why you shouldn't believe the bear scenario for BTC in 2022

BTC outflow from stock exchanges. Source: Glassnode
All content in this article is for informational purposes only and in no way serves as investment advice. Investing in cryptocurrencies, commodities and stocks is very risky and can lead to capital losses.

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