Charles Edwards tracked the performance of crucial indicators of miner behavior, transactional activity, power consumption, and bearish/bullish periods of the 2009-2020 cycles and concluded that the segment could be on the cusp of the next rally.
Seven metrics tell us that BTC has bottomed: one analyst
Charles Edwards has posted a long-awaited Bitcoin Bottom Signal Series thread to explain why the worst may be over for Bitcoin (BTC) speculators.
Bitcoin Bottom Signal Series.
A thread of on-chain signals which suggest the Bitcoin bottom is in, or very close. In my opinion, these are the most important on-chain metrics today. Based on Bitcoin’s 13 year history, they are telling me this is an extraordinary opportunity. pic.twitter.com/5io6WD2ELo
– Charles Edwards (@caprioleio) December 6, 2022
First, he noted that BTC adoption is at an all-time high (ATH) based on the number of wallets holding at least 0.1 bitcoin (BTC). In addition, the price of bitcoin (BTC) is below the Global Bitcoin Electrical Cost indicator, which historically is a reliable hopeful signal for bulls. The “Bitcoin price discount based on energy“has only been larger than on Black Thursday in 2020, and in 2015 when BTC was worth $160.
In addition, the capitalization of Bitcoin miners could also be over. Based on this volume indicator, bitcoin has never been cheaper in the past seven years. Miner capitulation – the most dangerous bearish pressure trigger – is also over, based on the Hash Ribbon momentum indicator.
The NVT dynamic indicator, one of the oldest measures of the crypto-currency economy that displays the “value” of a network based on the flow of transactions on the chain, is also in the green zone, according to Charles Edwards.
Stable currencies ready to fuel the next FOMO run
The next set of metrics – SLRV ribbons, dormant flow, HODL waves, and net unrealized profits/losses of long-term holders – is designed to represent the probability of selling by the “diamond hands“. All these measures are already in waters “bullish“, so anyone interested in selling has already sold.
Charles Edwards also noted the large volume of stablecoins that are poised to propel the bitcoin (BTC) rally to new heights: this money is simply “parked” and is not being withdrawn from the market:
If you look at the major stablecoins USDC and USDT, the market is more covered than ever. People are not parking their savings in stablecoins if they leave this industry, it is dry powder waiting to be deployed.
Finally, he pointed out that the period between the 780th and 1,020th day of each cycle offers a tremendous buying opportunity for bitcoiners (BTC).
Bitcoin energy value model Charles Edwards predicts a spike in the price of BTC to $100,000 by 2025.