There are many different indicators that analysts have used to predict the Bitcoin bottom in the past, and the Cumulative Value Days Destroyed (CVDD) is one of them. Mostly, these indicators are known for predicting the bottom because when they have appeared in the past, it did not take long until the Bitcoin price reached the lowest level of the cycle. The interesting thing about the CVDD flashing now is how low it is putting the BTC price before it finds a bottom.
CVDD Says Bitcoin Price Is Going Lower
The Cumulative Value Days Destroyed (CVDD) was highlighted by crypto analyst TradingShot as an indicator that has predicted Bitcoin’s price bottom in the past. Usually, when this indicator is triggered, it is not long before the bottom is reached. Moreso, the Bitcoin price tends to drop a bit lower than the price the CVDD points to before bottoming.
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Given how this indicator has performed in the past, it puts into perspective where the Bitcoin price might be in this cycle. Presently, the bulls are still holding above $70,000 while the CVDD is pointing to $49,280. This would mean that the Bitcoin price has actually not reached a bottom and could continue to decline again.
In addition to this, the MA200 on the 1-Day chart would need to confirm the bottom as a buy follow-up. When this happens, the crypto analyst says it means that the Bitcoin price has entered another bull cycle. Thus, if the digital asset follows the CVDD, then there would be a more than 30% crash coming.
Bull Market Peak Indicators Say Top Is Not In
While most analysts in the market are shooting to game the Bitcoin bottom, other indicators are pointing toward the fact that the digital asset hasn’t hit its peak yet. According to the 30 Bitcoin Bull Market Peak Indicators tracked by the Coinglass website, the bull market might not be over yet.
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One indicator that is yet to hit is the Bitcoin dominance, which hasn’t shown any signs of retracing. Instead, the pioneer cryptocurrency continues to dominate the market, leaving altcoins in the dust. Also, the Bitcoin long-term holder supply has not peaked, and the Bitcoin short-term holder supply follows the same trajectory.
Since none of the 30 indicators have been triggered, the tracker suggests that this might be the time to buy BTC and not sell. However, there are still the macroeconomic and political factors, such as the US-Iran war, to consider, as these could also negatively impact the Bitcoin price and where the bottom might form.
Featured image from Dall.E, chart from TradingView.com
