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Bitcoin: energy value promises continued rally

By World Crypto | World Crypto | 2 Jun 2020


To determine the direction of the trend of the bitcoin market, there are a number of onchain metrics. One of these indicators is the energy value, which signals the prospects for an even larger-scale bullish breakout of the main cryptocurrency exchange rate.

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The attention to the energy model of bitcoin was drawn by the analyst and asset manager Charles Edwards, who claims that the fair value of bitcoin is determined by the scale of energy consumption, the growth rate of supply and a constant value,representing the energy value in US dollars.

Is Bitcoin Overrated?

As Edwards notes, judging by this metric, today the first digital currency has been revalued for the first time since last September. According to him, this is good news:

When the energy value reaches the bottom and makes a rebound, often this signals a steady uptrend. Especially after halving. Already now we are seeing signs that the daily energy value exceeds the cryptocurrency rate itself. If this trend continues, we can expect acceleration in the growth of bitcoin.

During previous bull markets in 2013 and 2017, there was a massive rise in bitcoin without a corresponding increase in the amount of energy expended.

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Bulls in business

If you believe this price model, a similar situation may arise now. To reverse the trend, Bitcoin needs to confirm a recent breakthrough and show a close above the level of $ 10,500.

Recall that today the Bitcoin exchange rate has risen sharply, reaching highs in the region of $ 10,400 for the first time since mid-February. After an aggressive rally, quotes partially corrected for profit taking, but remain above the important psychological level of $ 10,000, which gives hope for the rally to continue after a short pause. If purchases are resumed, quotes may test the aforementioned $ 10,500 zone.

Do you think Bitcoin can continue to strengthen from current levels? Or is he waiting for a bearish correction?

 

 

 

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World Crypto
World Crypto

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