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These Bitcoin (BTC) Price Indicators Might Signal Next Rally

Sat, 03/04/2023 - 17:24
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Vladislav Sopov
Glassnode's lead crypto analyst who goes by @_Checkmatey_ on Twitter shares elements of reliable 'extremes' indicators of Bitcoin (BTC) cycles
These Bitcoin (BTC) Price Indicators Might Signal Next Rally
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As per the estimations of a seasoned analyst, a reliable cycle top indicator is activated when three oscillators out of four are simultaneously at extremes.

Four cycle top indicators by Glassnode lead analyst

In his recent tweet, Checkmate shared with his 75,000 followers a list of four popular on-chain oscillators. Once three of them are at extreme points, it becomes obvious that the Bitcoin (BTC) market reached its top in an ongoing cycle.

This list includes the MVRV Ratio, i.e., the ratio of the BTC market capitalization to its realized capitalization, the value of the coin compared to its price when last moved. This oscillator displays how many holders are in profit right now.

Then, analysts need to track the Puell Multiple, which is calculated by dividing the daily USD-denominated issuance value of Bitcoin (BTC) by the 365-day moving average (MA) of the daily issuance value.

The Adjusted Spent Output Profit Ratio (aSOPR) demonstrates the degree of realized PnL for all Bitcoins (BTC) moved on-chain except for UTXOs with a lifespan of less than one hour. Thus, it analyzes only meaningful on-chain activity and profits of BTC holders.

The last one is the Reserve Risk, an indicator of the sentiment of long-term Bitcoin (BTC) holders and their readiness to sell the coins at a given price.

To detect a cycle top, we need to register three out of four aforementioned indicators at their extremes.

Are we in bullish market?

This approach is dubbed a "WIP tool" and fluctuates between -1 and 1 for every given period of Bitcoin's (BTC) network lifespan, Checkmate added.

Since Q4, 2022, many researchers started discussing whether the bottom of Bitcoin's (BTC) price was in. For instance, analyst Charles Edwards was among the first to confirm the outbreak of a bullish rally.

Bitcoin (BTC): Analyst Identifies 9 Factors Pointing to Bull Run

As covered by U.Today previously, he indicated nine signals of a bull run start for Bitcoin (BTC) on Feb. 27, 2023.

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About the author

Blockchain Analyst & Writer with scientific background. 6+ years in IT-analytics, 3+ years in blockchain.

Worked in independent analysis as well as in start-ups (, Monoreto, Attic Lab etc.)