Does Bitcoin [BTC] close 2022 at a floor price? These analysts believe…

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CryptoQuant analysts have found that at its current price, BTC’s bottom is reached. The on-chain valuation revealed the re-entry of “smart money” into the market.

After trading momentarily above the $18,000 mark, Bitcoins [BTC] the price rebounded to trade hands below $17,500 after the Federal Reserve raised the federal funds rate by 50 basis points (bps) at its Dec. 14 meeting.

The drop in king coin price after the Fed meeting coincided with the spike in the cost of mining on the BTC network. According to CryptoQuant analyst Abramchart, while BTC was trading below the $18,000 price region, the cost to mine one BTC reached $19,463, indicating that miners at work on the network BTC were mining at a loss.

ReadBitcoins [BTC] Price Prediction 2023-2024

Abramchart assessed BTC’s historical performance based on this and believed that the bottom might be reached. According to the report, the analyst found a historical correlation between periods when miners mined BTC at a loss and when BTC recorded a low price.

The loss of miners started from June 12, 2022, when bitcoin reached $26,700, and the cost of mining one bitcoin at that time reached $29,450. The same movement appeared at the March 2020 low, the cost price of mining was above the value of Bitcoin and also at the 2018 low, Abramchart said.

Source: CryptoQuant

Another CryptoQuant analyst, MrPapi, shared the same view. He performed a BTC price adjustment for the money supply over the past few years and also concluded that the floor was in place.

Due to the impact of COVID-19 over the past two years, the United States government has had to print more money to cushion the economic stress of its people. According to MrPapi, an adjustment of the BTC price chart for the increase in money supply revealed a correlation between the current BTC cycle and that of 2019.

Using this chart, he suggests that the floor was between $15,000 and $17,000, MrPapi concluded.

Source: CryptoQuant

New money, stronger hands

An on-chain assessment of the BTC network’s profit and loss ratio (NPL) revealed the return of fresh demand towards the end of November. Santiment’s data showed a significant decline in BTC’s NPL ratio on November 18, after which its price rose.

NPL declines are often seen as indicators of a short-term sell-off by less confident investors, known as weak hands, and the return of more strategic investors known as smart money. These declines are often followed by a price rebound and recovery period.

Source: Santiment

With increased accumulation of whales and increased favorable macroeconomic conditions, we are preparing to close the fourth quarter of 2022. Well, this could support a further rise in the value of the main coin in 2023.

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