The best time to buy Bitcoin

Even though the cryptocurrency market is more volatile than ever, predictions continue to emerge thatprices will recover soon. According to analyst Philip Swift, a short window has now formed that provides the opportunity to buy bitcoin at an amazing discount.

Philip Swift created a graph in whichanalytics of current market value and the movement of specific bitcoins relative to their purchase price are presented. This is called the MVRV Z-account, which demonstrates that traders are currently selling bitcoins at a great discount.

«Market capitalization fell belowrealized capitalization (the basis of the cost at which bitcoins were purchased). The Z-score went back into the green zone. Such periods are historically very rare and optimal for accumulating bitcoins.

MVRV Z-Score

Market cap has now dropped below Realized cap (the cost basis that bitcoins were purchased at).

Z-score has now dropped back into the green zone.

Such periods have been historically rare and attractive to accumulate Bitcoin.

Live chart: https://t.co/vy9q5KJVLo pic.twitter.com/RdGCVXslna

- Philip Swift (@PositiveCrypto) March 16, 2020

In other words, bitcoin scammers sell much cheaper than usual. Each time such a situation arises, BTC recovered with a significant positive price movement.

According to CoinMetrics.io statistics, the rate at which bitcoin is sold at a loss has reached an eight-year high:

«On March 12, Bitcoin SOPR fell to 0.843, the highestlowest level since February 2012. SOPR is the ratio of the selling price to the buying price, so an SOPR below 1 indicates that investors are selling at a loss.

Bitcoin SOPR dropped to 0.843 on March 12th, the lowest it’s been since February 2012.

SOPR is the ratio of price sold over the price paid, so a SOPR below 1 signals that investors are selling at a loss. pic.twitter.com/lHIeNuf5EM

- CoinMetrics.io (@coinmetrics) March 16, 2020

There are various reasons for such fastsales. One of them is FUD, caused by the chaos reigning in the financial space. In addition, many crypto investors fear problems due to the spreading COVID-19. This is why traders liquidate most of their bitcoins for cash. Activity on Localbitcoins is further proof of the need for fast fiat money.

High demand for cash due to coronaviruscreates a market environment that mimics other financial crises. Those wishing to buy cryptocurrencies have not disappeared anywhere, but not everyone has the capital to invest. However, this scenario presents a good opportunity to acquire blockchain assets at a discount.

It is worth noting that with all the volatilitydevelopment and implementation of blockchains is ongoing. After the market crash, interest in this revolutionary technology has not diminished. Thus, those who still have not dared to invest in cryptocurrencies can finally try, prices contribute to this.

Deribit Whale:
$1,200,000 worth of #Bitcoin bought at $5,141.93 15:24:30 2020/03/16
| ????????????? Bitcoin is the real Bitcoin

- WhaleTrades? (@WhaleTrades) March 16, 2020

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