Bitcoin Could See Next Top At $89,200, Crypto Analyst Suggests

According
to
this
on-chain
indicator,
an
analyst
explained
how
the
next
potential
local
top
for
Bitcoin
could
be
$89,200.

Bitcoin
CVDD
“Assessing
Tops”
Metric
Could
Suggest
Next
Potential
Top

In
a
new

post
on
X,
analyst
Ali
Martinez
has
talked
about
where
the
next
top
for
BTC
could
be
based
on
the
Cumulative
Value
Days
Destroyed
(CVDD).
The
CVDD
is
an
on-chain
metric
derived
from
the
“Coin
Days
Destroyed”
(CDD).

A
“coin
day”
is
the
quantity
that
1
BTC
accumulates
after
sitting
dormant
on
the
blockchain
for
1
day.
When
a
coin
that
has
accumulated
a
certain
number
of
coin
days
is
moved
on
the
network,
the
coin
days
it
was
carrying
naturally
reset
back
to
zero
and
are
said
to
be
“destroyed.”

Related
Reading

The
CDD
measures
the
number
of
coin
days
being
destroyed
across
the
market
on
any
given
day.
Since
every
transaction
also
carries
some
USD
value
based
on
the
price
at
its
time,
the
CVDD
adds
another
layer
of
context
to
the
CDD
by
accounting
for
the
USD
value
of
every
coin,
breaking
dormancy
to
destroy
its
coin
days.

Unlike
the
CDD,
which
tracks
only
the
number
of
coin
days
being
destroyed
on
any
given
day,
the
CVDD
is
a
cumulative
sum
of
the
asset’s
history.
More
formally,
the
CVDD
is
calculated
as
a
ratio
between
the
cumulative
sum
of
the
value-time
destruction
on
the
network
divided
by
the
age
of
the
cryptocurrency.

Analyst

Willy
Woo
devised
the
original
CVDD,
which
has
proven
remarkably
accurate
for
locating
historical
bottoms
in
the
asset’s
price.
In
the
context
of
the
current
topic,
though,
the
“Assessing
Tops”
modification
from
CryptoQuant
author

Binh
Dang
is
of
interest.

This
indicator
combines
the
50-day

moving
average
(MA)
of
the
Bitcoin
spot
price
with
the
CVDD
and
aims
to
assess
probable
points
of
tops
in
the
asset,
as
its
name
suggests.

Now,
here
is
a
chart
that
shows
how
the
value
of
the
Bitcoin
Assessing
Tops
has
looked
like
recently:

The
trend
in
the
Assessing
Tops
and
CVDD
metrics
over
the
past
couple
of
years
|
Source:

@ali_charts
on
X

From
the
chart,
it’s
visible
that
the
Bitcoin
spot
price
had
briefly
breached
the
Assessing
Tops
back
in
March.
When
the
asset
exceeds
this
indicator,
its
price
is
generally
overheated
and
prone
to
forming
tops.
It
would
appear
that
this
had
also
held
up
during
this
recent
break,
as
the
asset
had
shortly
reached
a

top
following
it.

BTC
Price

At
the
time
of
writing,
Bitcoin
is
trading
at
around
$69,300,
down
more
than
1%
over
the
past
week.

Looks
like
the
price
of
the
asset
has
been
moving
sideways
since
the
drop
|
Source:

BTCUSD
on
TradingView

Featured
image
from
Dall-E,
CryptoQuant.com,
chart
from
TradingView.com

Go to Source
Author: Keshav Verma

Recommended Crypto Services, Products and Strategies:

The first thing any crypto investor needs is is a reliable and secure Crypto Wallet. Whether you’re looking for an online wallet, hardware wallet, desktop or mobile wallet, Crypto Renegade provides you with all the Best Crypto Wallets in each category.