Bitcoin is suffering another price correction along with the whole crypto market. At the moment of writing this article, BTC is trading in the red and the king coin is priced at $42,162.
Crypto analytics company CryptoQuant said that BTC could be at an inflection point. The company said that BTC could near a level where another price fall is off the table.
“The average duration of the Bitcoin drawdown might indicate that Bitcoin is close to where most of the drawdowns typically stop.”
CryptoQuant says that the recent dip in Bitcoin’s price from around $52,000 to around $46,000 shows that the king coin is “right at the edge where most of the drawdowns typically stop.”
According to the crypto analytics firm, Bitcoin has spent 68% of the time ranging between 40% and 85% off its all-time high.
Global maxima drawdown
The online publication the Daily Hodl notes that this is the typical period spent by an asset in a “global maxima drawdown.”
The same online publication notes the following explanation:
“A global maxima drawdown is the highest level of loss incurred from the time the value of asset declines from the all-time high to a bottom before a new all-time high is reached.”
Bitcoin’s all-time high, reached in November of 2021, is slightly above $69,000.
CryptoQuant also says that the supply of stablecoins in crypto exchanges is rising again after a recent drop.
“Our stablecoin chart is indicating less stablecoins on exchanges since 25th December of 2021 to 29th December of 2021 indicating more stablecoin withdraws on exchanges. Stablecoin supply keeps rising since 30th December of 2021 indicating more stablecoin demand.”
It’s been also revealed that the crypto analytics company said that the whale activity indicates that the selling pressure is waning since the start of the year.
“Last but not least our 30-day average whales ratio on hourly basis showing a falling trend indicating the sell pressure is reducing since 2nd January of 2022.”
Stay tuned for more news.