There are many different indicators that analysts have used predict the bottom of Bitcoin in the past, and the Cumulative Value Days Destroyed (CVDD) is one of them. Typically, these indicators are known for predicting the bottom because when they appeared in the past, it did not take long for the Bitcoin price to reach the lowest level of the cycle. The interesting thing about the CVDD flashing now is how low the BTC price gets set before it finds a bottom.
CVDD says Bitcoin price is heading lower
The Cumulative Value Days Destroyed (CVDD) was marked by crypto analyst TradingShot as an indicator that predicted Bitcoin price floor in the past. When this indicator is triggered, it usually does not take long for the bottom to be reached. Furthermore, the Bitcoin price tends to fall slightly lower than the price referenced by the CVDD before bottoming out.
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Considering how this indicator has performed in the past puts this into perspective where the Bitcoin price could be in this cycle. Currently, the bulls are still holding above $70,000, while the CVDD is pointing towards $49,280. This would mean that the Bitcoin price has not actually bottomed out yet and could continue to fall again.
In addition, the MA200 on the 1-Day chart should confirm the bottom as a follow-up to a purchase. When this happens, the crypto analyst says, it means the Bitcoin price has entered a new bull cycle. So if the digital asset follows the CVDD, there would be a crash of more than 30%.
The bull market peak indicators say the top has not yet arrived
While most analysts in the market are trying to play Bitcoin’s bottom, other indicators suggest that the digital asset has not yet reached its peak. According to the 30 Bitcoin Bull Market Peak Indicators followed according to the Coinglass website, the bull market may not be over yet.
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One indicator yet to be achieved is Bitcoin’s dominance, which shows no signs of recovery. Instead, the pioneering cryptocurrency continues to dominate the market, leaving altcoins in the dust. Moreover, the long-term supply of Bitcoin holders has not yet peaked and the short-term supply of Bitcoin holders is following the same trajectory.
Since none of the 30 indicators are activated, the tracker suggests that now may be the time to buy BTC and not sell it. However, there are still the macroeconomic and political factors such as the US-Iran war to take into account as these also negatively impact the Bitcoin price and where soil could form.
Featured image of Dall.E, chart from TradingView.com