A widely followed crypto analyst says technical indicators suggest that Bitcoin (BTC) is poised to make a big move to the upside.
In a new strategy session, the host of the YouTube channel InvestAnswers tells his 444,000 subscribers that the Bitcoin historical volatility index (BVOL) indicates that the top digital coin may soon break out of its current range.
BVOL measures the historical volatility levels of the largest cryptocurrency by market cap against the US dollar. A large spike in volatility often follows when the value of BVOL falls below 25.
“I want you to train your eyes on the BVOL correlation when it’s under that level of 25 and that is the best potential indicator for the upside we have seen in a long time. Typically, when we are down in this little green circle zone for the BVOL, it means the Bitcoin price – it has pumped. It’s only been here four times in the last five or six years and we shall see where this goes.”
The analyst says that on-chain indicator Net Unrealized Profit/Loss (NUPL), which shows whether the market is in a state of profit or loss, is flashing bullish signals.
“Any value above zero indicates the network is in a state of net profit while values below zero indicate the state of net loss and right now, we are very close to the state of net loss and that means basically it’s a bottom. Historically, whenever this new bull goes red, it’s a good time to enter.”
At time of writing, Bitcoin is trading for $19,135.
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Featured Image: Shutterstock/NESPIX/Konstantin Faraktinov
