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This Indicator Predicted Past Bitcoin Bull Runs; It Just Flashed Again

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This Indicator Predicted Past Bitcoin Bull Runs; It Just Flashed Again

If history rhymes, the coming few weeks and months may be extremely favorable for Bitcoin.
Image Courtesy of Glassnode.

So long as Bitcoin holds over its previous resistance at $13,200, it could be poised to see some serious upside down in the days ahead.

Bitcoin is currently seeing a strong uptrend, void of any bullish momentum in the stock exchange or the altcoin market.

One indicator that only flashes before Bitcoin sees parabolic rallies is back, and it can mean that the ongoing rally is just getting started.

  • Bitcoin’s price action as of late has been ultra-bullish, together with the cryptocurrency setting new yearly highs today in the midst of a stock market selloff
  • Its ability to break its close correlation with equities is a positive sign, and May be emblematic of mounting basic strength
  • Advisors are now widely imagining that upside is imminent from the near-term, with the recent support-resistance reverse of $13,200 being a positive technical development
  • One on-chain indicator is also bolstering this thought, as Bitcoin’s Net Unrealized Profit/Loss is now entering the”belief” zone — which tends to happen right before parabolic moves occur

This is around the price at which it’s been trading for the last several hours.
Featured image from Unsplash.
There’s a strong possibility that altcoins will eventually catch up to BTC, but it remains unclear when this could happen.
This individual strength comes as it proceeds reclaiming dominance, with all eyes closely watching to see whether or not Ethereum and altcoins will be able to follow in its lead.
One indicator that has predicted previous parabolic Bitcoin moves is now flashing a positive indication for the cryptocurrency.



Published at Tue, 27 Oct 2020 23:00:48 +0000
Analytics platform Glassnode talked about this indicator in a current tweet, pointing to the below chart showing the historical significance it has.
Bitcoin
“Bitcoin investor opinion: Net Unrealized Profit/Loss (NUPL) has been at the”Belief” zone for the last week. Currently, over 50% of the BTC market cap is composed of unrealized gains — a level not seen since August 2019.”

BTCUSD pricing information from TradingView.

This selloff was short lived, and the bastion of down bandwidth at these lows is what helped spark today’s move to new 2020 highs.

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