One of most reliable Bitcoin (BTC) price models suggests orange coin is terribly oversold
Veteran cryptocurrency analyst Charles Edwards has shared some good news for Bitcoin (BTC) bulls. Today’s Bitcoin (BTC) accumulation could provide wonderful opportunities for long-term strategies.
Bitcoin (BTC) trading with 54% discount: Charles Edwards’ Energy Value model
Edwards has taken to Twitter to share a chart that displays the correlation between “Energy Value” dynamics and actual Bitcoin (BTC) price fluctuations. It demonstrates that Bitcoin (BTC) is now trading with a monstrous discount.
Such impressive discounts were recorded only twice since the 2015 Bitcoin (BTC) cycle. In 2019, this level signaled a bearish Bitcoin (BTC) 2018-2021 cycle.
In March 2020, Bitcoin (BTC) was available with a 50%+ discount in the first hours after being decimated by the Black Thursday in crypto. On March 12, 2020, the Bitcoin (BTC) price crashed below $3,300; trading was halted on BitMEX and other major exchanges.
As previously covered by U.Today, legendary trader Peter Brandt claimed that Bitcoin (BTC) could still drop to zero with a 50% chance.
All models are wrong?
Ironically, similar statements were made by a prominent economist Raoul Pal, founder of Real Vision Media, a few weeks before Bitcoin (BTC) reached its top.
This bearish market has already challenged the most popular “uber-bullish” models of the price of bitcoin (BTC), which include rainbow and stock-to-flow. However, the bitcoin energy value model still works.
The Bitcoin Energy Value oscillator tracks the correlation between the BTC price and the energy consumption metrics of its network.
In addition, Charles Edwards is known as the inventor of the hash ribbon indicator of sentiment for bitcoin (BTC) miners.
