Seasoned analyst Charles Edwards of Capriole Investments fund is sure that market unlocks ‘extraordinary opportunity’ for Bitcoiners
Mr. Edwards tracks the performance of key indicators such as miners’ behavior, transaction activity, power consumption and the bearish/bullish periods of the 2009-2020 cycles and concludes that the segment may be on the verge of its next rally.
Seven metrics tell us that bottom is in for BTC: Analyst
Mr. Edwards released a much-anticipated thread Bitcoin Bottom Signal Series to explain why the worst might be over for Bitcoin (BTC) bulls.
First, he noted that BTC adoption is at an all-time high (ATH) based on the number of wallets holding at least 0.1 bitcoin (BTC). Furthermore, bitcoin (BTC) price traded below the Global Bitcoin Electrical Cost Indicator, which has historically been a reliable hopium signal for the bulls. Bitcoin’s “energy-based price discount” has only been higher on Black Thursday of 2020 and in 2015 when BTC was priced at $160 per coin.
Also, Bitcoin (BTC) miner capitluation might be over as well. Based on this volume indicator, Bitcoin (BTC) has not been so cheap in the last seven years. The capitulaition of miners – the most dangerous bearish pressure trigger – is also over, based on the Hash Ribbon dynamics indicator.
Dynamic Range NVT, one of the oldest cryptoeconomics metrics, reflects the “value” of a network based on transaction flow, which is also in the green zone, Mr. Edwards says.
Stablecoins ready to fuel next FOMO run
The next series of metrics – The SLRV Ribbons, Dormancy Flow, HODL Waves, and Long-Term Holders Net Unrealized Profit/Loss – are designed to portray the likelihood of selling by “diamond hands.” All of these metrics are already in “bullish” waters so that anyone interested in selling has already sold.
Furthermore, Mr. Edwards noted the large amount of stablecoins that are poised to supercharge bitcoin (BTC) to new highs: This money is just “parked” and not taken out of the market:
Looking at the main stablecoins USDC and USDT, the market is more hedged than ever before. People are not parking their savings in stablecoins if they are leaving this industry, this is dry powder waiting to be deployed.
Last but not least, he pointed out that the period between the 780th and 1,020th day of each cycle opens up an amazing buying opportunity for bitcoiners (BTC).
As covered by U.Today, Edwards’ Bitcoin Energy Value model foresees a BTC price spike to $100,000 by 2025.
