The price of Bitcoin may well surge in the coming days and weeks. This is at least if one is to believe a key bull run metric, which suggests Bitcoin is now bullish. Moreover, the last time this indicator was green, Bitcoin saw a frenetic rally to $13,800.
Bitcoin bull run “Guppy” indicator flashes green
Specifically, this measurement is known as the “Guppy” model. Guppy is a collection of different exponential moving averages. Furthermore, the model compounds these into a collective gauge of Bitcoin’s overall performance.
Perhaps most notably, the Guppy model has been surprisingly accurate in predicting Bitcoin price surges in the past. As such, the news that it is now once again flashing green is a source of optimism among traders. Additionally, this is the first time that the Guppy model is flipping to green in roughly 300 days.
The Guppy model’s last flip was on April 9th last year. At the time, Bitcoin then went on to rapidly rise to prices of around $13,800. Nevertheless, this is far from the only time the Guppy model has proven to be a bullish indicator.
On January 14th, 2018, the Guppy indicator also became bullish. As such, Bitcoin rose above the $9,000 price line – following a massive drop from its all-time high of $20,000. Seeing the Guppy indicator now flash green again is, therefore, a massive bullish boost for optimistic traders.
Puell Multiple indicator is also bullish, analyst says Bitcoin has support at $8,100
With that said, however, there are also other indicators suggesting that bullish Bitcoin momentum is now building. For example, the “Puell Multiple”, which relates to Bitcoin mining, is also a source of trader optimism.
In fact, the Puell Multiple is now saying that the value of freshly mined Bitcoin is “too low”. As such, this price level could suggest that the price of Bitcoin could soon increase. The Puell Multiple often sees Bitcoin go through price cycles.
This means that the current cycle of “too low” a price might soon switch to a cycle of a fair or even “too high” price. For this to happen, however, the price of Bitcoin would have to increase.
Moreover, the upcoming Bitcoin halving will likely only raise the “true value” of Bitcoin, as the supply become more scarce. A recent analyst’s take on Bitcoin’s risk-return ratio also said the crypto could see massive returns with comparatively low risk.
At the time of writing, Bitcoin is trading at $8,732. This represents an intraday gain, and could suggest that the premier crypto’s price is already reacting to these bullish indicators. Moreover, a Bitcoin analyst recently said on Twitter that the $8,100 level is now acting “as support” for the current Bitcoin price.
Rasmus Pihl is a writer for Toshi Times by day and an avid follower of the cryptocurrency industry by night. Rasmus holds a Bachelor’s Degree in Marketing from the Gothenburg School of Business, Economics, and Law and runs a Swedish marketing consulting firm. Moreover, when he isn’t writing for Toshi Times, traveling, working or changing the world in some other capacity, Rasmus is more than likely caught up in postgraduate studies.