According to the technical indicator of Bitcoin Days Destroyed (BDD), the price of Bitcoin (BTC) should rise much higher in the current market cycle. This is written by Hans Hauge, an analyst with the Ikigai cryptocurrency fund.
According to Hauge, the current mood in the Bitcoin market is similar to the mood in early 2017, that is, just a few months before the cryptocurrency reached its historic maximum of $ 20,000.
On his Twitter, he wrote :
Bitcoin bubble tops are clearly identified with a dark red cluster of Adjusted Binary BDD. Until that happens, we're not at the top. Public opinion is key here because that red cluster is caused by the assumption of the crowd and is self-fulfilling (reflexivity). pic.twitter.com/hZG9WMYcsS
– Hans HODL (@hansthered) August 22, 2019
The top of the Bitcoin bubble is clearly indicated by the dark red cluster of the adjusted BDD. Until this happens, we are not at the top. Public opinion plays a key role here because this red cluster is caused by the arrogance of the crowd and is a self-fulfilling prophecy.
BDD is the relationship between time movements and the number of bitcoins. Higher prices tend to coincide with the frequent movement of coins. According to Hauge, the opposite trend is currently observed. In addition to this, the Fear & Greed Index, which reflects market sentiment, has reached its historic low and is now at around 5 (extreme fear level).
“This is exactly what you need to look for if you want to buy a bottom for the long term ,” advised Hauge.
For most of this month, the price of bitcoin was in a boring sideways trend, which led to numerous reports of an impending market decline, however, from the perspective of long-term investment, many experts predict a new wave of growth. A cryptanalyst under the nickname PlanB also suggested that the current behavior of the price of bitcoin resembles the beginning of 2017:
#bitcoin 's 3 month struggle to break the magical $ 10k feels like begin2017 struggle to break $ 1k … we all know what comes next? pic.twitter.com/n8RdeA0U8D
– PlanB (@ 100trillionUSD) August 15, 2019
Bitcoin’s three-month fight to keep the $ 10,000 magic mark is similar to the fight at the beginning of 2017 for $ 1,000 … We all know what will happen next.
Publication date 08/23/2019
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