The entity-adjusted dormancy flow has historically been used to mark potential price bottoms in the Bitcoin market.
Bitcoin continues to struggle with sell-off pressure since its dip below $40,000, with a recent bounce fading off near $39k and then Thursday’s downturn pushing it below $37k once again.
Will Clemente, a popular analyst who hosts the Bitcoin Intelligence podcast and writes a newsletter to over 70,000 investors, believes the current price levels put BTC in a position of a potentially huge bounceback move.
According to the analyst, the benchmark digital asset is trading at its fourth most oversold level in history.
Bitcoin is currently the 4th most oversold in its history according to dormancy flow.
Dollar-cost averaging more heavily into this area is probably the best approach for the long-term investor. pic.twitter.com/5c2irfOL5L
