(ORDO NEWS) — CryptoQuant expert analyst Dan Lim predicted further developments on the Bitcoin (BTC) cryptocurrency exchange rate against the US dollar. He looked at the unrealized loss model and noted the breakout of the buy zone.
According to the trader, these indicators are very important for understanding what will happen next. He explained that unrealized losses are on-chain data that shows how many bidders are losing money at a given moment.
In a bear market, this indicator rises as it approaches the price bottom. As the volume of the crypto market increases, the peaks and lows of the bitcoin price become smaller over time. Lim explained that in this way, the upper part of this model also “became” lower with each new cycle.
The specialist carefully studied the situation at the beginning of 2023. He concluded that in the current cycle, unrealized losses peaked during the bankruptcy of the FTX exchange in November 2022. As of now, they have “broken out of the buying zone due to the recent strong BTC rally.” The likelihood that the price of bitcoin will update its low has decreased.
As of 09:30 GMT on March 22, 2023, bitcoin was trading at an average price of $28,241. The market capitalization of the virtual asset was $545.02 billion. This figure has increased by 1.95% over the past 24 hours.
Over the past 7 days, the rate of digital gold has already added 13.73%. Market participants completed transactions with a virtual coin for a total of $34.46 billion. This value lost 16.65% compared to yesterday.
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