According to a quantitative analyst known as PlanB, Bitcoin (BTC) may be poised for a significant bull market based on an indicator. During a recent strategy session on YouTube, PlanB informed his 51,600 followers that Bitcoin’s realized cost price, which calculates the average value of BTC supply at the last movement of coins, is indicating the likelihood of a more noticeable bull market.
Bitcoin bull market ahead
PlanB explained that in the past, when the price has risen above the two-year realized cost price, it has typically resulted in significant upward movements.
“The important thing that we see is that the Bitcoin price, the red dots, crossed over the two-year realized cost price, and it already crossed the realized cost price, and it already crossed the five-month, short-term cost price. So now, it’s a new thing… It crossed the two-year realized price, and that’s an important signal. Of course, the month is not over, so we’ll wait and see how [June] closes.”
PlanB also notes that the realized cost price readings are all moving up together after years of remaining stagnant.
“In history, closing above the two-year realized price was a signal that the bull market [was about to] accelerate. Same here in 2016 and 2019 was a bit of a weird year with the Covid black swan…”
He continued and said the following:
“So it’s very interesting and one more thing that is also very interesting, the realized price, the black line, and the two-year realized price, the blue line, started to increase again since a long time. I think it declined for about a year, and now for the first month, it’s increasing again, and that’s when things become really interesting, so we’ll have to see what Bitcoin will do.”
Stay tuned for more news and make sure to check out the original article as well.