Bitcoin recorded the highest ever weekly close of around $61k recently. The most market-capped cryptocurrency is on a roll right now, breaking previously-held records for fun and holding on to its gains. The bears are now hanging on with a thread and their latest move to pull the index below $60k has failed. Now, a new metric has turned green that may take the bullish cause even further.
Carrying a rather complex name (The Long-term and Short-term Holder Realized Price Ratio or LTHSTH-RPR), the metric has been successful in predicting upticks before. It was created by analyst Dylan LeClair and in layman terms, it shows the tendency of the current market to hold onto Bitcoins in the long-term or the short-term. When this index is increasing, it means that long-term HODL trend is strong and no one is cashing out. ON the other hand, when this metric is decreasing, it shows us that the short-term sellers have entered the market and are looking to make profit rather than hold out for longer.
Le Clair explained simply:
THREAD – Using Long-Term & Short-Term Holder cost basis to navigate the #Bitcoin market cycle.
Using the realized price (essentially the average cost basis) of long-term holders (LTHs) and short-term holders (STHs), we can evaluate what cycle the $BTC market is in.
— Dylan LeClair 🟠 (@DylanLeClair_) September 30, 2021
Other metrics are also flashing green for the cryptoucrrency. The absolute number of Bitcoin HODLers is also nearing record numbers as well as the total amount of cryptocurrency being held by them. The relative strength index in the long-term is also in oversold territory even if the short-term one is in slightly overbought one. The crypto just had the highest weekly close in its entire history and there are no sellers rushing to enter the market. That bit is clear.
However, all of the Bitcoin “bulls” are however not agreeing on when this massive price increase will actually take place. Some are predicting it by the end of November. Others have their eyes set on the end of the calendar year and still others believe that the index will see a dramatic rise at the end of this month. So, there is an agreement on the bull run but not when it will actually take place. Only time can tell when the next big uptick will take place.
Image Source: pixabay.com
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