The “Bitcoin Bubble Index” strongly indicates that there will be another local peak in the price of BTC this year.
The latest data shows that Bitcoin (BTC) is facing a “double bubble” and there will be two price peaks this year.
Charles Edwards, CEO of investment company Capriole, emphasized in a tweet on Wednesday that there is a key similarity between 2021 and the 2013 double top bull market cycle.
Bitcoin accelerates to break through the second price apex
Bitcoin’s bull run in 2021 is more like 2013 or 2017—the other two years of the bull that followed the Bitcoin block reward halving, and opinions on this issue are not consistent.
If you only look at one indicator—unrealized profit and loss (UP&L), the answer may be simple. According to Edwards, only 2013 produced similar profitability.
“New evidence of a double bubble in Bitcoin,” he concluded.
“At the top of the previous cycle, the rebound has never been able to keep unrealized profits and losses above 0.5. Only the double bubble in 2013 and today achieved this.”
This view is further adapted to the popular S2F price model, which believes that the average reading of BTC/USD this year will reach 100,000 U.S. dollars or more. Its creator PlanB previously gave a minimum of $135,000 at the end of the year as the “worst-case scenario” for Bitcoin.
Double bubble?
He is not the only one who has come to the conclusion of a “double bubble”.
The dedicated monitoring tool Bitcoin Bubble Index also depicts two price peaks this year.
As a background, the bubble index reached an all-time high of 119 on April 14, when BTC/USD reached the current all-time high of $64,500. Currently, it measures 110, which is almost the same as the top, with Bitcoin at $44,500.
In May, when Bitcoin was heading towards a local low of $29,000, data from the on-chain analytics company Glassnode also pointed out that the situation in 2013 will be repeated this year.
Post time: Aug-20-2021