Bitcoin (BTC) only needs history to repeat itself and see a significant increase in price, according to two indicators that are now on the rise.
On September 28th, the chain monitoring resource Glass knot noted that Bitcoin’s difficulty in compressing the tape had come out of its green “buy” zone for the first time since Black Thursday caused by the coronavirus in March.
Glassnode suggests a “significant” BTC price hike
Difficulty compression is based on Difficulty, a metric developed by statistician Willy Woo to measure the optimal times to buy Bitcoin.
The bands use simple moving averages for mining difficulties that diminish when miners sell BTC to offset the cost and then often capitulate at the end of the bear markets. This will keep miners stronger and then prices and growth will recover.
Compression adds a standard deviation to the mix so analysts can quantify tape compression and more accurately calculate when it will hit market.
“”The difficulty of tape compression leaves the buy zone for the first time since March. “ Glassnode commented and shared the data on Twitter.
“In the past, these have been periods that have been characterized by positive momentum that indicates a significant increase in Bitcoin prices.”
Courting He agreedand added The difficulty bands were “the most reliable personal favorites” among Bitcoin price metrics. He said BTC investors should prepare for “a great fourth quarter of 2020”.
Historical bitcoin difficulty level ribbon compression chart with buy zone breakouts. Source: Glassnode
$ 145,000 by 2022?
Another chart that’s making the rounds of the cryptocurrency Twitter community this week is this Spot volume currency index from BitWise.
Following the periods in the history of BTC prices from lows to highs against the backdrop of the halving of cycles The graph currently gives a strong indication that BTC / USD is trending up an order of magnitude towards 2021.
Until the end of next year If historical behavior repeats, the market could trade closer to $ 150,000 than it is to $ 10,000.
BitWise Spot Volume Currency Index comment table. Source: Twitter
As Cointelegraph reported, The anticipation for Bitcoin continues to grow in line with historical precedents, starting outside the current range, which has hit $ 12,500.. Factors such as the strength of the US dollar keep optimism in check but are at odds with the fundamentals of the network, including the difficulty, which is at its all time high.
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