This Indicator Used To Predict Bitcoin Bottoms Is Flashing Below $50,000

TL;DR

The Cumulative Value Days Destroyed (CVDD) indicator suggests Bitcoin could drop below $50,000 before finding a bottom. Currently, it points to a price of $49,280, indicating further decline is possible.

Key points

CVDD suggests Bitcoin price could drop below $50,000
Current CVDD points to a price of $49,280
A more than 30% crash is possible according to CVDD

There are many different indicators that analysts have used to predict the Bitcoin bottom in the past, and the Cumulative Value Days Destroyed (CVDD) is one of them. Mostly, these indicators are known for predicting the bottom because when they have appeared in the past, it did not take long until the Bitcoin price reached the lowest level of the cycle. The interesting thing about the CVDD flashing now is how low it is putting the BTC price before it finds a bottom.

CVDD Says Bitcoin Price Is Going Lower

The Cumulative Value Days Destroyed (CVDD) was highlighted by crypto analyst TradingShot as an indicator that has predicted Bitcoin’s price bottom in the past. Usually, when this indicator is triggered, it is not long before the bottom is reached. Moreso, the Bitcoin price tends to drop a bit lower than the price the CVDD points to before bottoming.

Given how this indicator has performed in the past, it puts into perspective where the Bitcoin price might be in this cycle. Presently, the bulls are still holding above $70,000 while the CVDD is pointing to $49,280. This would mean that the Bitcoin price has actually not reached a bottom and could continue to decline again.

In addition to this, the MA200 on the 1-Day chart would need to confirm the bottom as a buy follow-up. When this happens, the crypto analyst says it means that the Bitcoin price has entered another bull cycle. Thus, if the digital asset follows the CVDD, then there would be a more than 30% crash coming.