According to an analysis of Bitcoin Days Destroyed (BDD), the price of Bitcoin (BTC) will increase significantly over its current market cycle, as the mood of the crowd outweighs it.
In the messages on the social networks On August 22, Hans Hauge, head of quality research at the Ikigai Crypto Investment Fund, said that the atmosphere at Bitcoin is similar to that of early 2017. A few months later, cryptocurrency reached its record of $ 20,000.
In a tweet attached to a diagram, Hauge wrote: "The ends of the Bitcoin bubble are clearly identified by a dark red group of adjusted binary BDDs." He added:
"Until that happens, we have not reached the top yet, public opinion is crucial here because this red bunch is caused by the mood of the crowd and it refreshes itself (reflexivity). "
What is BDD?
BDD refers to the time between movements of a bitcoin amount. Higher prices tend to correlate with more frequent coin movements – and, according to Hauge, the opposite trend is currently observed.
In this context, as recently reported Cointelegraph, Bitcoin Fear & Greed index, which also measures market sentiment, is at the bottom of its potential range.
"That's exactly what you should be looking for if you want to buy the long-term decline," Hauge advised.
Waiting time for Bitcoin accumulation phase
The BTC / USD pair was largely stable this month. This led to warnings about the risk of slowing down.
Then it could be a Fall to about $ 7,000 give, as another shopkeeper explained. He added that such a retreat would be plausible given the history and would not signal any bear market.
In turn, other market analysts say the opposite: new growth is expected in May due to the halving of next year's lump sum bonus.
PlanB, a Twitter user who likes to use the stock-to-flow method to predict the price of bitcoin, also said that the current behavior is similar to that of early 2017.
"Bitcoin has been fighting for 3 months to break the $ 10,000 magic bar, recalling the beginning of 2017, when he's beaten with $ 1,000 … we all know what will follow" you a Tweet of him last week.