Bitcoin (BTC) has experienced a recent drop in price, leading some analysts to speculate that it could reach lows not seen in years. Two key metrics are being used to forecast this potential downturn: the Volume Weighted Average Price (VWAP) and the Volume Profile Visible Range (VPVR).
In 2022, BTC emerged as the best-performing asset, surging to $30,000 and nearly doubling its price in just a few months. However, the momentum quickly faded, and the cryptocurrency fell back to a multi-month low of $25,300 in August. Despite this retracement, crypto analysts on X (Twitter) have warned that Bitcoin may not be out of the woods yet.
Analyst Jake Wujastyk noted that BTC has dropped to the November 2022 VWAP zone but remains above it. VWAP, similar to the Realized Price metric, calculates the average price at which investors acquired their holdings. While this is positive news, there is a negative scenario to consider.
According to the Volume Profile Visible Range (VPVR), Bitcoin could potentially plummet all the way down to $12,500. VPVR is a metric used in volume trading and is considered “very reliable” in certain situations by another crypto analyst. This analyst, who goes by the name Jesse on Twitter, has found the VPVR to be highly accurate when the row size is set to 1000. In fact, they claim to have achieved over 400% gains this year using this metric.
While these metrics provide insights into potential price movements, it’s important to note that the cryptocurrency market is highly volatile and subject to various factors. Therefore, it’s crucial for investors to conduct thorough research and exercise caution when making investment decisions.
In conclusion, Bitcoin’s price could potentially drop to $12,500 based on the VWAP and VPVR metrics. However, it’s important to approach these predictions with caution, as the cryptocurrency market is known for its unpredictability. Investors should stay informed and consider multiple factors before making any investment decisions.
Note: The content of this article is for informational purposes only and should not be considered as financial advice.