‘One Of The Greatest’ Bitcoin Metrics Says BTC Price Bull Run Is Here

New analysis says that bitcoin (BTC) is entering a new “speculative cycle” typical of a bull run.

one in do On May 16, Philip Swift, creator of data resource LookintoBitcoin and co-founder of trading suite DeckTrader, revealed that history is repeating itself. RHODL ratio metric.

RHODL RatioCreator on BTC Price: “Zoom Out”

The RHODL ratio is a way of tracking BTC price behavior based on the actual value of the supply – the price at which the coin last moved.

Created in 2020 by Swift, it compares the relative ages of coins that moved a week ago to those that moved one to two years ago.

The ratio gives insight into the relative activity of short-term (STHs) and long-term holders (LTHs) and, by extension, the extent to which speculation exists in the market.

Currently, RHODL is bouncing higher, hitting its green accumulation zone in late 2022.

At the time, Swift told Cointelegraph that bitcoin was “at the point of maximum opportunity” – something that has since proved to be true, with BTC/USD gaining 70% in Q1 2023.

Prior to this, its descent towards that point coincided with bitcoin’s retracement to its macro lows.

Now, as speculative activity is on the rise, they believe a new bull cycle is already underway.

“When I created the Bitcoin RHODL Ratio Indicator in 2020, one thing that struck me was how it showed a new bull run… when the ratio started to increase in value for smaller coins. That’s where we are now,” he remarked.

“Don’t panic about the small price drop. Zoom out.”

Bitcoin RHODL ratio annotated chart. Source: Philip Swift/Twitter

Swift isn’t alone in her conviction. Principal on-chain analyst at React, Checkmate, Glassnode, called RHODL ratios “one of the greatest discoveries of the series.”

Meanwhile, the accompanying chart notes that the 2021 bull market, despite delivering a blow-off top for BTC/USD, did not see a copycat move for RHODL. The last time the metric hit its red “high speculation” zone was in late 2017 at bitcoin’s previous all-time high.

Bitcoin RHODL ratio chart (screenshot). Source: Lookinto Bitcoin

fear, depression, and lack of interest

Continuing, Swift argued that on the shorter time frame, market participants remain at risk on the crypto markets.

Related: Watch These BTC Price Levels as Bitcoin Threatens to Lose $27K Support

The conclusion was generated with a “bearish” rating for bitcoin after a scan of funding rates on exchanges. decentretrader, These are related to funding rates as well as open interest and the long/short ratio.

Market data for various major cryptocurrencies (screenshot). Source: Dcentretrader

“The market is still fearful/gloomy/reluctant…” he Abbreviation Same day

Earlier this month, Swift gave Cointelegraph an updated forecast on what could happen to bitcoin in the final year before its next block subsidy halving. Apart from other events, the question of returning the $20,000 does not arise.

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This article does not constitute investment advice or recommendations. Every investment and trading move involves risk, and readers should do their own research when making decisions.