Even three signals in the Bitcoin price news flashed today, showing that we might be seeing a new BTC rally very soon. In times when traders are asking themselves “are we seeing the start of a new rally,” it is safe to say that some metrics are turning bullish for the flagship cryptocurrency.
If we cast aside the Bitcoin price drop from earlier this week, we can see that some stars are colliding for the dominant coin. Even three new Bitcoin (BTC) metrics are now pointing that something is happening – but no one knows if we are seeing the start of a bull run.
As revealed by the analyst Timothy Peterson of the asset manager Cane Island Alternative Advisors on May 21, the dominant coin was still firmly bullish according to three key metrics. So, are we seeing the start of a new BTC rally?
I track 3 #bitcoin metrics: Metcalfe value, lowest price forward, and 200-day moving average. Apr 29th was only the 4th time in history they converged. The prior 3 were followed by a substantial uptrend in price. pic.twitter.com/Gi1COeLoWm
— Timothy Peterson (@nsquaredcrypto) May 21, 2020
As he wrote on Twitter, there are three signals (metrics) which include the “Metcalfe value, the lowest price forward and the 200-day moving average” which have all flashed recently. The analyst noted:
“Apr 29th was only the 4th time in history they converged. The prior 3 were followed by a substantial uptrend in price.”
When tracking the basked back several years, we can see that a new BTC rally comes following the previous convergence which occurred just before the Bitcoin bull run which began in April 2019. Then, the 200-day moving average played a role in determining long-term support and resistance levels for the price.
On the other hand, the Bitcoin Metcalfe value is a more complex quant calculation on which Peterson even wrote a guide because of its implications. “Bitcoin’s price provides a transparent look at Metcalfe’s law at work,” he noted back then.
Peterson noted that the value for December 31, 2020 was $10,400 which is identical to the Metcalfe value reading. So, this may point that we may be seeing a new BTC rally soon.
Lowest Price Forward (formerly Never Look Back) #bitcoin forecast 12/31/2020 ~10,400. Metcalfe value, a completely different formula that I rely on, also has #bitcoin ~10,400 at year end. Both forecasts make assumptions that future user growth resembles past user growth. pic.twitter.com/ZCc1I0yNa1
— Timothy Peterson (@nsquaredcrypto) April 9, 2020
As it turns, quant analysts are gaining attention in the cryptocurrency news for their suggestions that Bitcoin may be taking a new rally. A price dip occurred days before the event, followed by a recovery and then a less substantial lowering through this week.
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