{"id":107875,"date":"2021-01-08T19:06:18","date_gmt":"2021-01-08T19:06:18","guid":{"rendered":"https:\/\/precoinnews.com\/?p=107875"},"modified":"2021-01-08T19:06:18","modified_gmt":"2021-01-08T19:06:18","slug":"bitcoin-indicator-that-signaled-10x-rally-in-2017-flashes-again","status":"publish","type":"post","link":"https:\/\/precoinnews.com\/bitcoin\/bitcoin-indicator-that-signaled-10x-rally-in-2017-flashes-again\/","title":{"rendered":"Bitcoin Indicator That Signaled 10x Rally in 2017 Flashes Again"},"content":{"rendered":"

A Bitcoin trend indicator whose last appearance in 2017 had sent the prices 10 times higher appeared again this Wednesday morning.<\/p>\n

Dubbed as “Bitcoin MVRV Z-Score,” the indicator is nothing but a ratio of the difference between the cryptocurrency’s actual and realized market capitalization. Glassnode, the blockchain analysis platform that created the said metric, sees the score below zero as a sign of an undervalued Bitcoin. Meanwhile, anything above 7 indicates a market top\u2014an overbought Bitcoin.<\/p>\n

\n

“The MVRV Z-Score is used to assess when Bitcoin is over\/undervalued relative to its fair value,” Glassnode explained. “When market value is significantly higher than the realized value, it has historically indicated a market top (red zone), while the opposite has indicated market bottoms (green zone).”<\/p>\n<\/blockquote>\n

<\/p>\n

Bitcoin reached ‘5’ on Wednesday for the first time since December 2017. Glassnode stated that a similar upside move in June 2017 had led to a 1,000 percent price rally, hinting BTC\/USD could repeat the same scenario in the future.<\/p>\n

Twin Sentiments<\/h2>\n

The fractal surfaced in the wake of a relentless Bitcoin bull run that took its prices from as low as $3,858 in March 2020 to as high as $35,868 this Wednesday. Traders and investors poured massive capital into the cryptocurrency’s market, believing a narrative that projects it as a hedge against inflation\u2014like gold.<\/p>\n

<\/p>\n

In December, the Federal Reserve Chairman reiterated that they want to take the inflation rate above 2 percent in the coming years. The US central bank committed to purchasing corporate and government debts indefinitely while maintaining benchmark lending rates between zero and 0.25 percent.<\/p>\n

The prospects of earning lower yields in the bond and currency markets sent investors to more volatile safe-haven alternatives.<\/p>\n

Bitcoin and Gold benefited from capital migration owing to their scarcity against unlimited fiat supply. Nevertheless, analysts noted that Bitcoin would eventually overtake gold\u2014a $9-12 trillion market\u2014as the best safe-haven amid an economic crisis.<\/p>\n

\n

“A crowding out of gold as an \u2018alternative\u2019 currency implies big upside for Bitcoin over the long term,” said JPMorgan strategists in their latest note to investors.<\/p>\n<\/blockquote>\n

“A convergence in volatilities between Bitcoin and gold is unlikely to happen quickly and is in our mind a multiyear process,” they added as a caution, implying the cryptocurrency could still hit at least $146,000 in the long-term, if not in 2021.<\/p>\n

Bitcoin Overbought, Technically<\/h2>\n

The long-term timeframe charts\u2014the daily and weekly\u2014reflect Bitcoin as an overbought asset. The cryptocurrency’s Relative Strength Indicator is extremely higher above ’70,’ which increases its possibility of either undergoing a deeper downside correction or an overextended sideways consolidation. The RSI neutralizes itself below 70 on such price moves.<\/p>\n

Many analysts, including Josh Rager, sees the price correcting by 30-50 percent before it resumes its uptrend to more record high.<\/p>\n

Source: Read Full Article<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

A Bitcoin trend indicator whose last appearance<\/p>\n","protected":false},"author":3,"featured_media":107874,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[47],"tags":[],"yoast_head":"\nBitcoin Indicator That Signaled 10x Rally in 2017 Flashes Again - Pre Coin News<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/precoinnews.com\/bitcoin\/bitcoin-indicator-that-signaled-10x-rally-in-2017-flashes-again\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Bitcoin Indicator That Signaled 10x Rally in 2017 Flashes Again - Pre Coin News\" \/>\n<meta property=\"og:description\" content=\"A Bitcoin trend indicator whose last appearance\" \/>\n<meta property=\"og:url\" content=\"https:\/\/precoinnews.com\/bitcoin\/bitcoin-indicator-that-signaled-10x-rally-in-2017-flashes-again\/\" \/>\n<meta property=\"og:site_name\" content=\"Pre Coin News\" \/>\n<meta property=\"article:published_time\" content=\"2021-01-08T19:06:18+00:00\" \/>\n<meta name=\"author\" content=\"mediabest\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:image\" content=\"https:\/\/precoinnews.com\/wp-content\/uploads\/2021\/01\/ccryptafotoDepositphotos_2470903_s-2019.jpg\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"mediabest\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/precoinnews.com\/bitcoin\/bitcoin-indicator-that-signaled-10x-rally-in-2017-flashes-again\/\",\"url\":\"https:\/\/precoinnews.com\/bitcoin\/bitcoin-indicator-that-signaled-10x-rally-in-2017-flashes-again\/\",\"name\":\"Bitcoin Indicator That Signaled 10x Rally in 2017 Flashes Again - 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