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- New way to watch BTC
- Price models are becoming less relevant
The “Most Sociable” long-term chart was shared by an analyst at Adaptive Capital, Murad MahmudovyThose who recently bought bitcoin for around $17,800 while the market was in panic.
New way to watch BTC
The chart provided by Mahmudov is somewhat unique as it compares bitcoin by the sum of the USD to US money supply and the dollarized European money supply. The chart provides more insight into the movement of bitcoin as it is being compared to the money supply aggregate.
Most accommodating long term charts I have found among all cryptos.
BTC measured in USD is divided by the sum of the US m3 supply and the EU (dollarized) m3 money supply.
In other words, adjusting BTC price action by expanding the broader money supply aggregate.
Think about it. pic.twitter.com/X5869ptIJi
— Murad (@MustStopMurad) 22 June 2022
The newly formed chart shows that bitcoin is approaching a major bottom for the fourth time. Previously, the monetary supply charts from BTC worked perfectly, predicting the start of almost every bounce and top since 2014.
The new price model predicted global bottoms in 2013, 2015 and 2020, and global tops in 2014, 2018 and 2021. In addition to the global top and bottom, the chart shows pre-global version reversal points, which suggest that bitcoin has all the chances to rise above the latest $69,000 ATH.
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Price models are becoming less relevant
Unfortunately, in an era of industry growth the price models used in the crypto market are not as relevant as before, especially after the stock-to-flow model failed to catch up with bitcoin’s most recent movements.
Earlier, the creator of the second largest cryptocurrency on the market, Vitalik Buterin, expressed his concern over the various price models being followed on the cryptocurrency market as they have lost their relevance.
The newly introduced price model for bitcoin has also faced a lot of criticism and has even been called “face” as overall market sentiment remained negative after the cryptocurrency lost more than 70% of its value. Is.
