Despite the Bear Market, Bitcoin Is Still Worth Buying

    Whereas many predictions that Bitcoin price could plunge deeper, Fidelity analysts showed that this is the best time to buy this coin.

    Volatility Ratio between Bitcoin and Gold 

    Setting up the volatility ratio between 2 assets will help investors to choose which one is better to hold. These ratios are also the basis for predicting the future price of the asset.

    The Bitcoin/Gold ratio has plunged to the best supporting level that was previously the 2008 resistance level. 

    Bitcoin/Gold Ratio. Source: Fidelity.
    • Bollinger Band statistical chart displays the ratio is at a rare support zone for many years. Look out for the green areas that reach -2, that’s the Bitcoin recovery zone.
    • It can be said that this is the best time to make an investment decision.

    Measure market “strong hands” 

    Bitcoin Dormancy Flow is a lifespan indicator. It measures the average number of Bitcoin days destroyed on each transaction. A lower Dormancy Flow indicates that the most patient holders have collected the majority of their Bitcoins from retail traders after a strong selling. Then, holders (who have never sold off) will begin to distribute their Bitcoins for a new bull cycle as new buyers emerge.

    Bitcoin Dormancy Flow. Source: Fidelity.

    The green zone is where Dormancy Flow support. This on-chain indicator not only reached the 180 support zone but also reached it twice. In the past, this was the potential time for buying.

    60% price drop won’t let “strong hands” down

    Bitcoin has been down more than 60% since its ATH, and BTC long-term holders (at least 10 years) have remained steady at above 13%. That “stubbornness” is an important element of the stable growth of this coin. 

    Bitcoin Holders. Source: Fidelity.

    Disclaimer: This article is for reference purposes only, not investment advice. Investors should have deep research before making a decision. We are not responsible for your investment decisions.

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