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Hero of 2018 Crypto Bearmarket Returns and Provides Bitcoin Chart No One Expected

Thu, 06/23/2022 - 10:29
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Arman Shirinyan
Here's another way of looking at BTC charts
Hero of 2018 Crypto Bearmarket Returns and Provides Bitcoin Chart No One Expected
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"The most confluential" long-term chart was shared by an analyst at Adaptive Capital, Murad Mahmudov, who recently purchased Bitcoin at approximately $17,800, while the market was in panic mode.

New way of looking at BTC

The chart provided by Mahmudov is somewhat unique as it compares Bitcoin to USD divided by the sum of the U.S. money supply and the dollarized European money supply. The chart provides more insight into Bitcoin's movement as it is being compared to money supply aggregates.

The newly formed chart suggests that Bitcoin is reaching a major bottom for the fourth time. Previously, the BTC to monetary supply chart worked perfectly, predicting almost every bounce and top starting from 2014.

The new price model predicted a global bottom in 2013, 2015 and 2020 and global tops in 2014, 2018 and 2021. In addition to global tops and bottoms, the chart shows pre-global version reversal points, which suggests that Bitcoin has all the chances to rise above the most recent $69,000 ATH.

Price models are becoming less relevant

Unfortunately, price models the crypto market used back in the development era of the industry are not as relevant as before, especially after seeing the stock-to-flow model failing to catch up with Bitcoin's most recent movements.

New ProShares Bitcoin ETF Trades $35 Million of Value on 2nd Day of Trading

Previously, the creator of the second biggest cryptocurrency on the market, Vitalik Buterin, expressed his concerns over following various price models on the cryptocurrency market as they have lost their relevance.

The newly presented price model for Bitcoin has also faced a lot of criticism and was even called a "cope" since overall market sentiment remains negative after the cryptocurrency lost more than 70% of its value. 

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About the author

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.

Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with deep analysis of crypto projects and technical analysis of cryptocurrency trading pairs.