Bitcoin price indicator, followed by a 250% price increase, shows positive momentum again after 6 months

Compression of the Bitcoin Difficulty Ribbon has broken out of a bear trend it has been in since the coronavirus crash in March. Could this provide the positive momentum in the Bitcoin price that many bulls in the market have been hoping for for some time?

The history of BTC simply has to repeat itself in order to trigger another price increase in the Bitcoin price. So two indicators signal an upward movement for the father of all crypto currencies.

On September 28, the on-chain data aggregator Glassnode noted that the compression of the Bitcoin Difficulty Ribbon had broken out of the green buying range for the first time in half a year. In addition, a Bitcoin chart is circulating on Twitter this week, giving many people hope for much more. Let’s take a closer look at which indicators these are and what they say.

Glassnode points to „significant“ Bitcoin price increase

The compression of the Bitcoin Difficulty Ribbon is based on the Difficulty Ribbon, a metric developed by statistician Willy Woo to estimate the optimal time to purchase Bitcoin.

The Ribbons use simple moving averages for the Difficulty in Bitcoin Supersplit scam Mining, which contract when Bitcoin Miners sell BTC to compensate for their operating costs. The result of strong sales is capitulation, which often occurs at the end of bear markets. It acts like a self-cleaning of the market at the end of which only the most competitive BTC miners remain on the market. This is followed by a recovery phase in the Bitcoin price, which usually initiates further growth phases.

Compression also adds standard deviation to this mix, allowing analysts to quantify ribbon compression and calculate even more precisely when buyers should enter the market.

Now Glassnode twittered:

The compression of the Bitcoin Difficulty Ribbon is in an uptrend and broke out of the green buying zone for the first time since March. Historically, these periods are characterised by positive momentum indicating a significant BTC price increase.

Woo agreed with this statement and wrote that one should be prepared for a „great 4th quarter for Bitcoin in 2020“.

$145,000 per BTC by 2022?

Another chart that made the rounds on Twitter this week is BitWise’s spot volume currency index.

Tracing periods in the BTC price history from lows to highs against the backdrop of the Bitcoin halving cycles, the chart currently gives a strong indication that the Bitcoin price could reach new highs for itself.

If the historical behaviour is repeated by the end of next year, the market will approach $150,000 rather than $10,000.

In general, the anticipation of the next Bitcoin Course Run continues to build in line with historical precedents. However, factors such as the recent burgeoning strength of the US dollar are still holding back optimism and are at odds with the network’s fundamentals, including Bitcoin’s difficulty, which are at an all-time high.

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