Bitcoin (BTC) is still at the “low end” of a 2021 bubble, new data tracking miner and investor behavior suggests.
In the latest signal that BTC price action still has major growth potential, researcher Geert Jan Cap showed bullish signs coming from Bitcoin’s thermocap.
Thermocap suggests Bitcoin just getting started
Thermocap is a metric which aims to track Bitcoin price cycles based on actions taken by miners and investors with regards to buying and selling BTC.
It employs the so-called thermocap multiple, which divides the Bitcoin price on a certain day by the cumulative block subsidy, or all rewards earned by miners from day one.
The resulting value gives an insight into how profitable it is to sell at a given price point, and therefore why price volatility may have ensued at various times in Bitcoin’s history.
“It shows when a bubble in the price was present with a very high signal to noise ratio,” an introduction to the metric explains, adding that thermocap also “enables comparison of the bubble peaks” and “appears to show a relatively constant value of the multiple for ‘healthy’ price levels” among other benefits.
As of Jan. 17,Title: Bitcoin thermocap metric shows BTC price is still in the ‘low end’ of bull cycle
Sourced From: cointelegraph.com/news/bitcoin-thermocap-metric-shows-btc-price-is-still-in-the-low-end-of-bull-cycle
Published Date: Mon, 18 Jan 2021 13:30:00 +0000