WhatAnalyst Willy Woo has identified old-school Bitcoin on-chain models that could indicate a potential bottoming zone for the asset in the current cycle.
WhyHistorically, Bitcoin has bottomed between its realized price and the CVDD (CoinDays Destroyed) metric, which measures the average age of coins being spent on-chain.
SignalThe convergence of these two metrics could serve as a strong signal for investors, indicating a potential floor price range for Bitcoin.
TargetIf this on-chain model holds true, investors may be looking to accumulate Bitcoin at a price point that is significantly lower than current market levels, potentially setting the stage for a future price increase.
RiskHowever, it's essential to note that on-chain models are not foolproof and should be used in conjunction with other forms of analysis to make informed investment decisions.