Prominent cryptocurrency analyst InvestAnswers claims that the signal on the network suggests that Bitcoin (BTC) should be on the rise by now.
In a new strategy session, the pseudo-analyst looks at the bitcoin strike price (RP), which reflects the value of all bitcoins at the price they were bought for, divided by the number of coins in circulation.
The analyst notes that historically, BTC did not stay below RP for long.
“We are counting down to the next halving and here we are below the realized price… It’s been 170 days now and the actual price is below this RP of around $21,000, suggesting an increase in the real price. to be expected since we won’t stay at the bottom that long, at least many people think so….
This is the visual rainbow of the realized price. And you can see that the price of bitcoin is pretty much, most of the time, above RP… About 97% of the time, 98% of the time it is higher. Now it’s below. Now the question is, how does this happen in history? »
Bitcoin was below RP for 110 days in 2011, 240 days in 2015, 115 days in 2018, 8 days in 2020, and 170 days in 2022, according to the analyst, which means a BTC bounce could be close.
The growing weakness in the US dollar index (DXY) is also evidence that Bitcoin is poised for a rally, the analyst said. DXY represents the dollar against a basket of other major fiat currencies and is traditionally thought to be inversely correlated with risky assets such as bitcoin and cryptocurrencies.
“This is a pretty good sign, because as we know, when DXY goes up, bitcoin goes down, and vice versa. They are inversely correlated. If history repeats itself - and we’ve been talking about it a lot lately - this chart signals a possible breakout. But you can also say that he has already accelerated from 115 to 109. But here it is again. If this happens, it will also be very good for the risk area. »
 
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