Bitcoin Thermocap metric shows BTC price is still in the ‘low end’ of the bull cycle

Bitcoin (BTC) is still at the “low end” of a 2021 bubble, suggests new behavior from data tracking miners and investors.

In the latest signal that BTC price action still has major growth potential, researcher Geert Jan Cap shown Bullish signs coming from the Bitcoin thermocap.

Thermocap suggests Bitcoin is just getting started

Thermocap is a metric that aims to track Bitcoin’s price cycles based on actions taken by miners and investors when it comes to buying and selling BTC.

It uses the so-called multiple thermocap, which divides the price of Bitcoin on a certain day by the cumulative block subsidy, or all rewards earned by miners from day one.

The resulting value provides insight into the profitability of selling at a given price and, therefore, the reasons why price volatility may have occurred at different times in Bitcoin’s history.

“This shows when a bubble in the price was present with a very high signal-to-noise ratio,” explains an introduction to the metric, adding that the thermocap “also allows comparison of bubble peaks” and “appears to show a relatively constant value. of the multiple for “healthy” price levels among other advantages.

As of January 17, 2021, Bitcoin’s thermocap multiple stood at 17.5, down from a recent high of 20 earlier this month.

Given that bubble activity historically occurs between the ages of 16 and 60, it’s immediately obvious that Bitcoin still has considerable room to explore this bull cycle.

“We’re still at the bottom of the 21-bubble phase,” Cap sums up in the accompanying Twitter comments.

Weak hand sales define bear markets for BTC

When it comes to how hodlers cause and respond to price events, statistician Willy Woo believes that a cycle of weak hand sales during each bear market in Bitcoin’s lifetime is a provable phenomenon that outweighs the evolution of stories.

Sunday, Woo Highlighted The realized price of Bitcoin – in US dollars stored in the network – being above the lowest spot price at the end of 2018 and in March 2020. In the first case, BTC / USD fell 85% from its previous high of nearly $ 20,000.

“Weak hands (buyers who buy under FOMO) always capitulate, which allows savvy buyers to do business,” he commented.

“It happens in EVERY bear cycle.”

The comments are particularly timely given recent market trends, with Bitcoin climbing to $ 42,000, selling for $ 30,000, and then hitting $ 40,000 again, all within a week.

As Cointelegraph reported, the data showed a decrease in low-balance wallets, while the number of wallets with a balance of 1000 BTC or more increased. A transfer of bitcoin from small investors to whales was underway, analysts have warned, calling on sellers not to part with their funds under such volatile conditions.