One Bitcoin (BTC) metric suggests the top crypto asset could be on the verge of a strong upward price move, according to the co-founders of the analytics firm Glassnode.
Jan Happel and Yann Allemann, who go by the handle Negentropic, tell their 63,200 followers on the social media platform X that the Bitcoin Risk Index touched 100 over the weekend.
“Its current slight retraction might stick: If we see a further retraction from here we most likely hit a clear bottom with a strong move up in Bitcoin price. Historically this has been the case…
What we observe here is that when risk of a major drawdown retreats from a strong peak (100 is reached and then lost again), price tends to react quite strongly to the upside – despite the continued increased risk of a major drawdown!”
The Bitcoin Risk Signal gauges whether BTC is at risk of a major drawdown in price. Glassnode says it is “based on a set of proprietary indicators, including bitcoin price data, on-chain data, and a selection of other trading metrics.”
Bitcoin is trading at $57,664 at time of writing. The top-ranked crypto asset by market cap is up nearly 1% in the past 24 hours.
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