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Price analysis
Considering the Arnaud Legoux averages, I can see the strength of the trend within the price chart itself.
What we have?
The average of 32 (green) has crossed below the average of 64 (blue), and there is now an expansion in width between these two averages.
And the average of 128 (white) started to slant down.
This indicates a fall in the short and medium term.
The averages of 256 (yellow) and 512 (orange) still point up, but tend to sideways, indicating possible support and resistance.
Hard time to predict.
In a possible bigger drop, theoretically the next support would be in the average of 1024 (cyan), and if a meteor falls on the Earth it would be in the average of 2048 (purple).
In short, we see a driving force pushing the price down, at least in the short term.
It remains to be seen how long this will happen.
On-chain analysis
Now let's look at Glassnode's indicator 'Price Drawdown from ATH', which is the percent drawdown of the asset's price from the previous all-time high.
Currently, the loss of those who bought at the top is 27% (0.27 x 100).
What is the crux of this indicator?
The best buying region is when the drawdown reaches high values, and then there is an upward reversal.
We can cite the peak of July 20, 2021, when the drawdown reached 50%.
Soon after that, the market understood that it was a good region to buy, and the price continued to rise.
If this happens again and the market crashes, the next good entry price would be $28,755, when the drawdown reaches 50%.
Price analysis
Considering the Arnaud Legoux averages, I can see the strength of the trend within the price chart itself.
What we have?
The average of 32 (green) has crossed below the average of 64 (blue), and there is now an expansion in width between these two averages.
And the average of 128 (white) started to slant down.
This indicates a fall in the short and medium term.
The averages of 256 (yellow) and 512 (orange) still point up, but tend to sideways, indicating possible support and resistance.
Hard time to predict.
In a possible bigger drop, theoretically the next support would be in the average of 1024 (cyan), and if a meteor falls on the Earth it would be in the average of 2048 (purple).
In short, we see a driving force pushing the price down, at least in the short term.
It remains to be seen how long this will happen.
On-chain analysis
Now let's look at Glassnode's indicator 'Price Drawdown from ATH', which is the percent drawdown of the asset's price from the previous all-time high.
Currently, the loss of those who bought at the top is 27% (0.27 x 100).
What is the crux of this indicator?
The best buying region is when the drawdown reaches high values, and then there is an upward reversal.
We can cite the peak of July 20, 2021, when the drawdown reached 50%.
Soon after that, the market understood that it was a good region to buy, and the price continued to rise.
If this happens again and the market crashes, the next good entry price would be $28,755, when the drawdown reaches 50%.
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