3 Bitcoin price metrics showing 'insane' similarities to 2020 breakout
Bitcoin (BTC) is copying the prelude to its 2020 breakout to an “insane” extent, the co-founders of Glassnode have said.
In a tweet on June 15, Yann Allemann and Jan Happel highlighted three BTC price metrics which are anything but bearish.
BTC/USD reached local highs of $31,000 in April, but since then has dipped around 20%. Sentiment has taken a beating in the process, with downward price predictions becoming the norm in the intervening weeks.
While recent events have placed additional pressure on the market, Allemann and Happel see at least three good reasons for optimism.
Several on-chain indicators, they revealed, now look uncannily like they did in Q3 2020, just before BTC/USD beat its old 2017 all-time high of $20,000.
“The resemblance to Sep 04, 2020, is insane…,” they wrote in part of commentary.
Leading the line-up is the classic relative strength index (RSI), which measures how overbought or oversold BTC/USD is at a specific price point.
Daily RSI currently measures 35, data from Cointelegraph Markets Pro and TradingView confirms. This is its lowest reading since early March, just before Bitcoin’s most recent uptick which resulted in the $31,000 peak a month later.
“RSI is at levels that led to major reversals and rallies,” the post explained.
Continuing, Allemann and Happel flagged the Cipher B readings for Bitcoin, these coming from a collection of algorithms that converge to offer signals of, among other things, when to buy dips during bull markets.
“Cipher b wave trends are at levels that led to major reversals and rallies,” they repeated.
Finally, the appropriately-named Bitcoin Risk Signal is back at its September 4, 2020 position. Risk Signal predicts the likelihood of a major BTC price drawdown, and at that time
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