Bitcoin (Bitcoin) Facing a “double bubble”, there will be two price tops this year, the latest data shows.
in a tweet On August 18th, Charles Edwards, the CEO of the investment company Capriole, emphasized that there is a key similarity between 2021 and the 2013 double top bull market cycle.
Bitcoin prepares for the second peak
Bitcoin has different opinions The bull market in 2021 is more like 2013 or 2017—the other two years followed the block subsidy halving event.
Looking at an indicator, unrealized gains and losses (UP&L), the answer may be simple. According to Edwards, only the profitability of coins in 2013 produced similar results.
“New evidence of a double bubble in Bitcoin,” he concluded.
“At the top of the previous cycle, the rebound could never keep the unrealized profit and loss above 0.5. Only the double bubble in 2013 and today achieved this.”
This view is further adapted to the popular stock-to-flow price model, which requires the average reading of BTC/USD this year to be $100,000 or more. Its creator, PlanB, had previously given a minimum of $135,000 at the end of the year as the “worst-case scenario” for Bitcoin.
Double bubble?
These findings are not the only findings that have led to the “double bubble” conclusion.
Dedicated monitoring tool Bitcoin Bubble Index It also depicts the two-stage price peaks this year.
In terms of context, the bubble index hit a record high of 119 on April 14, when BTC/USD reached the current all-time high of $64,500. Currently, it measures 110, almost the same as the top, and Bitcoin is $44,500.
In May, as Bitcoin fell to a local low of $29,000, data from the on-chain analytics company Glassnode also pointed to this year imitate year 2013.
