AxelAdlerJr
Warming up the crypto world: is the bull run imminent?
Bitcoin Price Temperature (BPT) is an oscillator that models the number of standard deviations by which the price has deviated from a 4-year moving average. Compare past cycles with the current "heating" before a bullish rally. šµ 4 Year Moving Average š¢ 4-Year Moving Average +2 Sigma š 4-Year Moving Average +6 Sigma š“ 4-Year Moving Average +8 Sigma The 4-year moving average represents the average cost of Bitcoin over the last 4 years. It can serve as a baseline or "norm" for the current Bitcoin price. +2 sigma indicates a price level that is 2 standard deviations above average. If the price reaches or exceeds this level, it might indicate a potential overvalued state of the market. +6 sigma and +8 sigma represent even higher deviation levels from the norm. The higher the price relative to these levels, the greater the likelihood that the market is in a "bubble" or extreme overvaluation state. If the Bitcoin Price Temperature (BPT) is at levels above +2 sigma, investors might consider it a warning of possible overvaluation and increasing risk. Throughout this year, the price hasn't even risen to the BPT-2 level. The best description for this would be the market "warming up" before a bull run. š You can find this indicator on my new dashboard at this link: https://cryptoquant.com/analytics/dashboard/650de954ca432c72d6ef82b1