A look at a little-known Bitcoin price indicator that has been historically reliable so far suggests that we may be about to begin a major uptrend.
According to CoinDesk, the analytical company Glassnode says that the Reserve Risk Multiple indicator of Bitcoin has crossed zero and has become positive for the first time since October 2021 (October 1400).
Reaching this indicator above the zero level in previous periods has been associated with a sharp increase in the price in the short term.
Anchin analyst Ali Matrinez tweeted on Monday:
In the years 2012, 2013, 2015, 2019 and 2020, respectively, we have seen a growth of 2,830%, 566%, 6,400%, 99% and 487% of the price of Bitcoin (under the positive influence of this index).
The Glassnode indicator defines such reserve risk as a long-term periodic indicator that measures the ratio between the curre price (the inceive to sell) and the seriousness of long-term investors (the opportunity cost of not selling). Low reserve risk values indicate long-term investors’ resistance to selling and vice versa.
The risk reserve multiplier is calculated by dividing the daily value of this index by its 365-day moving average.
Reaching the reserve risk multiplier indicator above zero and below zero in the past has accurately predicted the beginning of major upward and downward trends.
If history repeats itself, the positive indicator of the reserve risk multiplier means that the 80% growth of the price of Bitcoin since the beginning of 2023 and reaching its highest level in the last 10 mohs in the range of $30,000 is likely to be the starting poi of this upward trend.
This possible bullish trend is also consiste with Bitcoin price’s tendency to make big jumps in the mohs leading up to the halving eve. This eve is scheduled to halve the reward for mining each block (the supply growth rate) of Bitcoin approximately every 4 years. According to predictions, the fourth bitcoin halving will take place in April next year.
