Hidden Metric Revealed in Bitcoin: Bull or Bear This Metric Will Tell

Cryptocurrency analytics company Alphractal has published a remarkable report on Bitcoin’s (BTC) annual performance.

This is a rare pattern, the report says, and Bitcoin’s 1-year percentage change metric shows “the very least significant trend” in its history; limited price movement within the next few days could be key to how the market will move.

Alphractal argues that historically, periods when this indicator is negative have generally coincided with bear markets. However, the report points to an important exception July 2020 is a big one. The annual performance was briefly negative at that time, followed by a strong bull market and subsequently slack.

The analysis company said the pattern is “very much like this very special time in 2020.” a rise of about 4 per cent, . It would be 5–5% if Bitcoin’s annual performance indicator could turn positive again. It is only second time in Bitcoin’s history that such a rare pattern has emerged, if this happens.

The Alphractal report includes the following assessment:

An increase of about 5% would bring the metric back into the “green” zone and open up the way for a new trend reversal.

If this increase does not occur, annual performance will remain negative, presenting a picture consistent with previous bear market cycles.

The report says that Bitcoin, which has only a few percentage points of price movement, will either break an historical pattern or confirm ‘an event that coincided with past bear markets’. Hence, as Alphractal emphasizes, “the current levels are the critical decision zone from both a technical and historic perspective.”

*This is not investment advice.

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