A critical metric for the Bitcoin price has been announced. The metric also explains what the next step will be for Bitcoin. Let’s look at the details.
Prospects for Bitcoin
Glassnode’s co-founders say it mimics Bitcoin’s debut in 2020 to a “frantic” degree. Yann Allemann and Jan Happel tweeted on June 15. In the tweet, they highlighted three BTC price metrics that are nothing but bearish. Bitcoin reached its yearly peak at $31,000 in April. Since then, there has been a decrease of around 20 percent. In the intervening weeks, bearish price forecasts have become the norm. In addition, sensitivity was also hit in this process. While recent events have put additional pressure on the market, Allemann and Happel see at least three good reasons for optimism.
They state that some indicators on the blockchain reveal an important metric for Bitcoin. Accordingly, Bitcoin mimics the third quarter of 2020. Let’s just say that this quarter is important. Because right after that, the rise started. Part of the comment reads, “The resemblance to September 04, 2020 is insane.” they wrote. At the top of the ranking is the classic relative strength index (RSI), which measures how overbought or oversold BTC/USD is at a given price point. According to data from TradingView, the daily RSI currently measures 35. This is Bitcoin’s lowest value since early March. Also in the post is the phrase “RSI at levels leading to massive reversals and rallies.”
Critical metrics
Looking at cryptokoin.com, Allemann and Happel continue to offer signals, among other things, when to buy dips during bull markets. They point to the Cipher B readings for Bitcoin that come from a collection of algorithms that came together for this. “Cipher b-wave trends are at levels leading to massive reversals and rallies.” they are emphasizing. Finally, the aptly named Bitcoin Risk Signal has returned to its position on September 4, 2020. The Risk Signal predicts the possibility of a massive drop in BTC prices. At that time, it had reached a “high risk” level before it declined. Subsequently, the Risk Signal values remained stable for months in a row as the BTC/USD pair rose.
Elsewhere, Glassnode, on the other hand, is noting encouraging signs that investors are keeping their faith in the long run. According to chain analyst Checkmate, the backlog among existing hodlers remains impressive. He also sums up the sentiment by emphasizing “It’s pretty gloomy outside” in his tweet.
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