Bitcoin Could See Next Top At $89,200, Crypto Analyst Suggests
June 10 2024 - 4:00PM
NEWSBTC
According to this on-chain indicator, an analyst explained how the
next potential local top for Bitcoin could be $89,200. Bitcoin CVDD
“Assessing Tops” Metric Could Suggest Next Potential Top In a new
post on X, analyst Ali Martinez has talked about where the next top
for BTC could be based on the Cumulative Value Days Destroyed
(CVDD). The CVDD is an on-chain metric derived from the “Coin Days
Destroyed” (CDD). A “coin day” is the quantity that 1 BTC
accumulates after sitting dormant on the blockchain for 1 day. When
a coin that has accumulated a certain number of coin days is moved
on the network, the coin days it was carrying naturally reset back
to zero and are said to be “destroyed.” Related Reading: Bitcoin
& Ethereum On “Path To Acceleration,” CryptoQuant Explains Why
The CDD measures the number of coin days being destroyed across the
market on any given day. Since every transaction also carries some
USD value based on the price at its time, the CVDD adds another
layer of context to the CDD by accounting for the USD value of
every coin, breaking dormancy to destroy its coin days. Unlike the
CDD, which tracks only the number of coin days being destroyed on
any given day, the CVDD is a cumulative sum of the asset’s history.
More formally, the CVDD is calculated as a ratio between the
cumulative sum of the value-time destruction on the network divided
by the age of the cryptocurrency. Analyst Willy Woo devised the
original CVDD, which has proven remarkably accurate for locating
historical bottoms in the asset’s price. In the context of the
current topic, though, the “Assessing Tops” modification from
CryptoQuant author Binh Dang is of interest. This indicator
combines the 50-day moving average (MA) of the Bitcoin spot price
with the CVDD and aims to assess probable points of tops in the
asset, as its name suggests. Now, here is a chart that shows how
the value of the Bitcoin Assessing Tops has looked like recently:
From the chart, it’s visible that the Bitcoin spot price had
briefly breached the Assessing Tops back in March. When the asset
exceeds this indicator, its price is generally overheated and prone
to forming tops. It would appear that this had also held up during
this recent break, as the asset had shortly reached a top following
it. Related Reading: Bitcoin Investors Beware: Extreme Greed Has
Returned In Crypto The Bitcoin Assessing Tops indicator currently
has a value of $89,200. While a top may not necessarily form if
Bitcoin rises to this level, a peak may indeed at least become
close when it does so if this indicator is to go by. BTC Price At
the time of writing, Bitcoin is trading at around $69,300, down
more than 1% over the past week. Featured image from Dall-E,
CryptoQuant.com, chart from TradingView.com
Ethereum (COIN:ETHUSD)
Historical Stock Chart
From Jun 2024 to Jul 2024
Ethereum (COIN:ETHUSD)
Historical Stock Chart
From Jul 2023 to Jul 2024