CryptoQuant analyst says others comparing BTC’s current price action to November 2018 are wrong.
In a CryptoQuant Quicktake shared on Friday, CryptoQuant analyst Onchain Edge asserted that analysts comparing Bitcoin’s current price action to November 2018 are wrong.
“Many analysts believe that BTC, now at $19k, is similar to $BTC at $6k in November of 2018. They are wrong about this bear market,” the analyst writes.
Will $BTC drop 50%, like in November of 2018?
— CryptoQuant.com (@cryptoquant_com) October 21, 2022
According to the analyst, the market is already in a bear market and has experienced a drop similar to November 2018. As per the analysis, the November 2018 drop from $6k to $3k is very similar to the fall from $30k to $18k.
The former represents a 50% decline, while the latter represents a 41% drop. According to the analyst, if the market falls further, measuring a 50% drop from the $30k price point puts the potential price bottom at about $15k, representing the possibility of an 18% decline and not 50% from current prices.
Notably, as highlighted by Onchain Edge, this price is very similar to the delta price, where the price bottomed in the 2015 and 2018 bear markets. Furthermore, Onchain Edge’s analysis aligns with a study by CryptoQuant in September, as reported by The Crypto Basic.
Onchain Edge, in the comments, summarizes by saying that it is a good time to start accumulating Bitcoin on a dollar-cost-averaging (DCA) basis. According to the analyst, the bottom is close even if the price drops.
Thanks a lot for the mention @cryptoquant_com!
The main key point you need to take away from this analysis is:
1. now is a good time to accumulate BTC at a much better price than long-term holders. Just DCA without emotions.
2. Even if there is a drop, the bottom is close.
— Onchain Edge (@onchain_edge) October 21, 2022
Meanwhile, CryptoQuant chief Ki Young Ju expressed similar sentiments in a tweet on Friday. The CryptoQuant CEO highlighted many more strong fundamentals to buy Bitcoin now compared to 2018. In the comments, Ki Young Ju said, “just buy Bitcoin.”
"Institutions are coming."
"Whales are accumulating BTC."
"Hashrate hits the all-time high."
"Long-term holders are not selling BTC."
"Crypto has fundamentals."
Guys, these are not memes anymore unlike the 2018 bear market. It's time to take those facts seriously.
— Ki Young Ju (@ki_young_ju) October 21, 2022
Bitcoin is trading at the $19,171.65 price point, posting marginal gains of about 0.80% in the last 24 hours.