Indicators suggest that Bitcoin is looking to repeat the October 2020-like rally that sent the prices from $10,000 to $65,000.
Bitcoin (BTC) price reacted as high as $44,600 on Aug. 7, the highest level since before the infamous May 19-crash. Meanwhile, there are increasing speculations that BTC could undergo a similar upside boom like the one that began in October 2020.
At least two indicators expected Bitcoin to pursue massive uptrends. The first one was Glassnode’s Entry-Adjusted Net Unrealized Profit/Loss that assists investors in determining whether the Bitcoin network as a whole is currently in a state of profit or loss.
A NUPL reading above zero indicates that the network is in a state of net profit, while values below zero indicate a state of net loss. The further NUPL deviates from zero, the more it helps investors spot market tops and bottoms.
In October 2020, the Bitcoin NUPL moved upward of zero as its heat map changed colors from yellow to green after successfully bouncing off the red zone in March earlier that year.
Bitcoin dropped later to below $30,000, a period that saw its NUPL mood switching from greed to denial and later to anxiety. But a strong buying sentiment near the $30,000 level helped sustain Bitcoin’s upside sentiment intact, offsetting anxiety with optimism.
On a similar note, market analyst Will Clemente also highlighted another indicator that promised to repeat October 2020’s upside boom. The fractal concerned the dynamic between short and long-term Bitcoin holders.
Bitcoin achieved an intraday high of $44,600 on Saturday before correcting lower due to profit-taking sentiment. BTC was changing hands for $43,500 at the time of writing.