Bitcoin Signal Preceding The 9,200% Rally Flashed Again
Bitcoin is trading in the green today, and at the moment of writing this article, the king coin is priced at $9,668.96.
Following the May halving, Bitcoin was expected to surge to the moon, but this hasn’t happened yet.
Experts explained that miner capitulation was necessary first, and this already occurred.
There are various optimistic predictions regarding the price of the most important coin out there and some important indicators are fueling them even more.
An important signal that preceded the 2017 9,200% rally flashes again
Blockchain data provider Glassnode says that a Bitcoin signal that preceded a massive BTC rally that saw gains of more than 9,200% between 2015 and 2017 is now back.
The company said that the Puell Multiple is hovering at a level that may offer a massive risk-reward ratio.
The #Bitcoin Puell Multiple has dropped back into the green “buy” zone after almost three weeks.
For investors with long-term time horizons these levels below the 0.5 line have historically marked excellent entry points into $BTC.
— glassnode (@glassnode) June 19, 2020
The online publication the Daily Hodl explained that “the Puell Multiple predicts boom-and-bust cycles from the standpoint of miner profitability by dividing the daily supply of Bitcoin in US dollars by the 365-day moving average of BTC’s daily issuance value.”
It’s also important to highlight the fact that according to Glassnode’s chart, long-term investors who0 are buying and holding whoever BTC’s indicator falls below 0.5 have seen massive gains.
This indicator has been seen flashing back when BTC ht a bottom in March following the selloff, and it also marked the bottom back in 2019, 2015 and 2012.
With or without a final rally, the remainder of the summer seems to be for a correction
Either July becomes a May ’19 like rocket candle (or inverse Nov ’18 like)
Or, if not, I think we’ll sell-off to 6K range throughout summer
Still long – waiting for movement pic.twitter.com/aoIiU3lOli
— //Ethereum ack (@BTC_JackSparrow) June 21, 2020
On the other hand, another important thing to mention is that crypto analysts are not yet convinced a big bull run will happen too soon.
CoinMarketCap is a website that provides cryptocurrency market cap rankings, charts, and more. It was purchased by Binance for $400M in 2020.
Andreas Townsend Author
I am a technical writer, author and blogger since 2005. An industry watcher that stays on top of the latest features, extremely passionate about finance news and everything related to crypto.