3 Bitcoin Price Metrics Just Converged — A Bull Run Has Always Followed

[CryptoInvestor]

3 Bitcoin Price Metrics Just Converged — A Bull Run Has Always Followed

May 22, 2020

A basket of one quant analyst’s favorite metrics is still overly bullish, casting aside this week’s Bitcoin price drop.

Three new Bitcoin (BTC) metrics are pointing to the sky despite $10,000 staying out of reach for BTC/USD this week.

As revealed by Timothy Peterson of asset manager Cane Island Alternative Advisors, as of May 21, the largest cryptocurrency was still firmly bullish according to the three metrics that he personally uses.

200-day moving average, Metcalfe and lowest price forward
“I track 3 #bitcoin metrics:  Metcalfe value, lowest price forward, and 200-day moving average,” he wrote on Twitter.

Apr 29th was only the 4th time in history they converged. The prior 3 were followed by a substantial uptrend in price.

Tracking the basket back several years, the previous convergence occurred just before Bitcoin’s bull run which began in April 2019.

As Cointelegraph reported, the 200-day moving average has often played a role in determining long-term support and resistance levels for the price. It currently sits at $8,000.

Bitcoin’s Metcalfe value is a more complex quant calculation, something on which Peterson wrote a dedicated guide due to its implications.

“Bitcoin’s price provides a transparent look at Metcalfe’s law at work,” he summarized at the time.

Meanwhile, the lowest price forward, formerly known as “never look back,” predicts a minimum value for BTC/USD on a given date. In April, Peterson noted that the value for December 31, 2020, was $10,400, identical to the Metcalfe value reading.

All going according to PlanB
Quant analysts have broadly shrugged off suggestions that Bitcoin is taking a hit from its third block subsidy halving earlier this month.

A price dip occurred days before the event, followed by a recovery and then a less substantial lowering through this week.

Regardless, the Bitcoin price is still well within the range of the stock-to-flow price model, perhaps the best-known quant tool among regular Bitcoiners.

PlanB, its creator, has demonstrated that a price of $288,000 following the halving is not unrealistic, and even double that is a possibility during the four years until the next halving.

https://cointelegraph.com/news/3-bitcoin-price-metrics-just-converged-a-bull-run-has-always-followed

[Fenix]

After the reward for miners is halved, in the first months Bitcoin usually decreases in price and only after the end of the year the price effect of this event is gaining full force. Therefore, we should not expect a sharp price increase in bitcoin for this reason. True, bitcoin and other cryptocurrencies may rise in price if the global economic crisis starts and inflation of ordinary currencies sharply increases. If this happens, for a decentralized cryptocurrency this will be the first economic crisis and it will be interesting for everyone to observe how it will conduct at this time in terms of price.

[bigcash2011]

I like to see more and more confirmations like this as community is already expecting huge bull run to start soon but i think this time around it will take a little bit more time due to pandemic and the world economic situation so hold your portfolio tight as good times are coming.

[TomPluz]

There are already many analyses of the many factors or influences that can be helping Bitcoin be pushed upwards especially beyond the $10,000 mark which has become the main challenge for now. Let's see if this scenario above can be playing well for our favorite and top-ranked cryptocurrency.

[Alcor]

Apparently, good growth in the cryptocurrency market should be expected from the second half of autumn or even later. However, such growth will be all the same. Perhaps adjustments in one or the other direction can still be made by the coronavirus pandemic and measures to combat it, which can bring the onset of the global economic crisis closer. However, in any case, we are waiting for the growth of the cryptocurrency market and especially our altcoins.
There are many different forecasts about the growth prospects of Bitcoin, ethereum and other potential altcoins, but it is better to wait and see how they will be carried out.