Examining A Lesser-Known Indicator Bitcoin Price, It Has Been Historically Reliable So Far, Indicating That We May Be On The Verge Of A Major Uptrend.

To Report CoinDesk, Inc Such an analysis Glassnod says that the Reserve Risk Multiple indicator Bitcoin crossed zero and became positive for the first time since October 2021 (Mehr 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 Martinez tweeted on Monday:

In 2012, 2013, 2015, 2019, and 2020, respectively, we saw a growth of 2,830%, 566%, 6,400%, 99%, and 487% in 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 current price (the incentive 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.

Reserve risk multiplier chart next to bitcoin price.

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 ten months in the range of $30,000 is likely to be the starting point of this upward trend.

This event will halve Bitcoin’s reward for mining each block (the supply growth rate) approximately every four years. According to predictions, the fourth bitcoin halving will occur in April next year. This possible bullish trend is due to the tendency of Bitcoin prices to make big jumps in the months leading up to the halving event also matches.