Thermocap: Bitcoin büyüme fırsatlarını tüketmedi
Thermocap, a system for tracking data and investor behavior, has demonstrated that Bitcoin (BTC) is still at the “low” of the 2020-2021 bull market. Analyst Gert Jan Cap, looking at the chart, believes that the BTC price movement still has an upside potential.
Thermocap is a metric aimed at tracking the price of bitcoin based on BTC purchases/sales undertaken by miners and investors. What matters is the metric obtained by dividing the BTC price on a particular day by the total block subsidy or all rewards earned by miners from the first day of mining.
By the obtained value, one can guess how profitable the sales at this cost are, and think why the volatility was reflected on the bitcoin price chart in a given period.
The Thermocap metric compares the peaks of price increases and also shows an indicator of a “healthy” price level. As of 1/17/2021, the Thermocap BTC ratio was 17.5, below the recent high of 20 at the beginning of the month.
Given that this has historically fluctuated between 16 and 60, it is clear that Bitcoin has not exhausted the potential for bull gains. On Twitter, Geert Yan Cap writes bluntly - Bitcoin is still at the bottom of the 2021 bull market phase.
Statistician Willie Wu believes that during every bearish cycle in Bitcoin history, there has been a period of selling weak hands.
Weak Hands - Buyers who buy Bitcoin due to loss of profit (FOMO) surrender, allowing strong and considerate buyers to close deals. This, Wu says, happens in EVERY bearish cycle.
The comments are especially timely given the latest market trends, where Bitcoin rallied to $42,000, sold to $30,000, and then hit $40,000 again, all within a week.