Closely followed crypto analyst Benjamin Cowen says a historically reliable on-chain indicator is suggesting that the bottom is here or very close for Bitcoin (BTC).
In a new interview with Kitco News, Cowen pulls out Bitcoin’s supply in profit and loss chart, which shows what percentage of BTC coins are giving their holders a profit or a loss.
The popular analyst says that the supply in profit and loss metric for BTC has historically coincided with long-term tops and bottoms.
Cowen also says that if BTC sees another leg down or perhaps a capitulation event, this indicator would strongly suggest that the bottom is in.
“Some of the charts that I think are the most interesting are things like the supply in profit and loss. One of the interesting things about this chart is that historically, Bitcoin does not bottom until after they cross. Until after they cross.
They crossed yesterday. For the first time this cycle, they crossed yesterday. And you can see a very cyclical pattern here for the Bitcoin supply and profit loss. The bottom occurs after they cross. When it comes up here, that’s generally the time where you want to scale out when we’re continuing to push those new all-time highs so to me this is an indicator that would suggest that if we did get another leg down there’s a lot of evidence that could be the major bottom.
This is one of the indicators that we could look towards.”
At time of writing, Bitcoin is changing hands for $21,673, up about 10% in the last seven days.
I
Don’t Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox
Check Price Action
Follow us on Twitter, Facebook and Telegram
Surf The Daily Hodl Mix
 
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/Joy Chakma/Gorev Evgenii
The post Historically Accurate On-Chain Indicator Suggesting Bitcoin (BTC) Bottom Is In, Says Analyst Benjamin Cowen appeared first on The Daily Hodl.
