The data shows that the “favorite” Bitcoin (BTC) price signal could turn bullish – and it has always led to a trend.
As podcast host Preston Pysh noted on October 18, the Long-Term Selling Price Ratio (LTHSTH-RPR) looks bullfight-ready.
Chart Shows Bulls Are Back
It may sound verbose, but LTHSTH-RPR is one of the most accurate bitcoin price indicators out there. Founder Dylan Leclercq, organizer of the Bitcoin 2021 conference, confirmed growth based on his data at the end of September.
“TL; DR: The lower the short-term outlook: The longer the selling price ratio, the more optimistic, ”he wrote in a Twitter caption.
“In the end, all the bears will die.”
Bitcoin LTHSTH-RPR chart. Source: Preston Beach / Twitter.
Now that the index has dropped a few months, it’s time for a resurgence – and BTC / USD has always benefited from it.
Under the hood, the LTHSTH-RPR shows the cost base for long-term contract holders and short-term contract holders. The long-term holder is defined by market research firm Glassnode in the chain as title coins that have not moved for at least 155 days.
Leclair added: “When the STH: LTH selling price ratio increases, this means that the cost base for STH increases over the cost base for LTH, and vice versa.”
“BTC rises when the margin seller is exhausted. This is why you see that the base value for LTH stays the same with explosive bulls, while the base value for STH (many of which are new entrants to the market) explodes – there just aren’t enough coins to trade. ”
So far, the base value of LTH has not been surpassed by the base value of STH – when this happens, the current downtrend should end.
The story “only up” remains
According to Cointelegraph, LTHSTH-RPR is just one in a series of bitcoin price calculations that have triggered bulls in recent weeks.
Related: Weekly Highs Ever – 5 Things To See In Bitcoin This Week
Everything from network metrics to networks and even pure math suggests that bitcoin is inevitable even more, which is highly anticipated in the fourth quarter of the year after being cut in half.
However, analysts are already watching the market for an exit. The ETF launch this week is also not expected to drive the market in the short term.
