Calling the bottom in Bitcoin is no easy task. Prices tend to fall more dramatically and faster than anyone is prepared for and is the investing equivalent of catching a falling knife.
Yet if anyone is equipped to accurately call the bottom in crypto, it would be Charles Edwards, fund manager and Bitcoin fundamental expert, responsible for creating some of the most famous tools in crypto.
Although you might not know Charles Edwards by name, you might have heard of some of his tools before. The Hash Ribbons, once known as the most profitable signal in Bitcoin ever, is among his custom toolset of crypto-specific indicators.
In a recent Twitter thread, Edward unveils a series of on-chain signals that present a strong case as to why the bear market bottom in crypto could be in.
Among the arguments made include the price per BTC dropping below the electrical cost of generating each coin, plus MVRV-Z score and long-term NUPL are at previous bear market lows.
Bitcoin briefly traded below its electrical cost Source: Glassnode
Edwards also cites that stablecoin capital is sidelined in USDT and USDC and hasn’t left the industry due to FTX — its just waiting for a reversal to reenter safely. He also points to miner capitulation in the Hash Ribbons.
The only problem is that the last time the tool fired, the previously profitable signal failed to yield any positive results for the first time since it was created. Will this signal redeem the indicator?
Will this coming buy signal do the trick?
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