Bitcoin (BTC) investors “won’t have long” to accumulate before a bull run continues past $ 20,000, a new report says.
Released December 10, the Asian crypto fund provider’s weekly report Stack funds predicts that one indicator in particular will follow historic precedent and push Bitcoin higher.
Report: You Can Buy BTC, But “Not For Long”
According to Slack, the market cap to thermo cap ratio (MCTC) is showing signs of a repeat of its performance in 2017, the year when BTC / USD on Coinbase went from less than $ 1,000 to $ 19,866.
MCTC takes a snapshot of Bitcoin’s market cap and then divides it by the total earnings of miners since the beginning of mining – the thermocap.
As of this week, MCTC is around 17, mimicking mid-2017 and remaining in a position where it has ushered in the start of a bull market twice.
“The ratio is currently at the 17 level, which coincides with the peak of 2019. In addition, the value is close to the 2017 breakout, where it swung around the 20 lever before the Bitcoin rally became a reality,” the report said.
Thus, in his current position, there is significant room for maneuver upward, leading Stack to believe that bullish progress will continue soon.
“Given that the ratio is still in the lower band, we are skewed to believe there are still opportunities for accumulation, but not long before the $ 20,000 price breakout occurs,” he summarized.
$ 19,400 proves stubborn resistance
Bitcoin has recovered in the past 24 hours after a sudden weakness ended a period of price consolidation to rekindle lows below USD 18,000.
At press time, BTC / USD circled USD 18,300, with traders watching for signs of a return of definitive support.
Such as Cointelegraph reportedhowever, there is little sign of definitive buyer support above USD 16,200 from the exchange’s order books, with USD 20,000 still at a make-or-break resistance level.
“If we want to get this bullishness and hit the all-time high again, I’d like to see a break above this block,” he summarized in an update on Thursday.