Neosify - Buy, Stake & Earn Crypto
Neosify - Buy, Stake & Earn Crypto
Neosify - Buy, Stake & Earn Crypto

Indicator that preceded 2.700% rise in Bitcoin appears again

By Kanielcash | Kanielcash channel | 19 Apr 2020

Will it be Bitcoin's new high?

An important indicator is showing that the same trend that led bitcoin to $ 20,000 is showing up again. Since the fall of bitcoin in late 2017, after reaching $ 20,000, investors are wondering when Bitcoin will hit new price records again. Bitcoin is now being traded below its production cost, despite halving being scheduled to take approximately 25 days. The last time this occurred was in 2016, when Bitcoin was traded below its production cost before that year's halving. Thereafter, the price of BTC rose 2,700% to $ 20,000 over the next 18 months.



It is important to note that this indicator is far from being the only sign that implies that another bullish rally will happen in Bitcoin.

According to the model, the 2.700% increase may happen again. The model in question is the stock-to-flow model, an econometric model that suggests that Bitcoin's value is derived mainly from its scarcity level, defined by the inverse of its inflation rate. The model, which has been tested again with a R-squared value of 95% (extremely accurate), suggests that Bitcoin will have a fair value of $ 55,000 to $ 100,000 after the May halving this year.

According to the model's creator, an analyst called PlanB, BTC has historically exceeded fair value readings during bull markets, suggesting that the same could happen again.


Theta expects this trend to continue, saying that they believe miners "will continue to accumulate until well after halving", which could result in prices quickly surpassing the $ 20,000 record "due to supply shock".
Trader Theta Seek shared that, according to his analysis, using data from Chainalysis, specific BTC miners have "accumulated coins in the past six months".


How do you rate this article?



Content creator Professional Trader Online earnings

Kanielcash channel
Kanielcash channel

Online earnings with Cryptocurrencies

Send a $0.01 microtip in crypto to the author, and earn yourself as you read!

20% to author / 80% to me.
We pay the tips from our rewards pool.