Bitcoin's reserve risk multiple, a historically reliable but lesser-known price indicator, has turned positive for the first time since October 2021, according to blockchain analytics firm Glassnode. The reserve risk multiple is a long-term cyclical indicator that compares the incentive to sell at the market price to long-term holders resisting the temptation to liquidate. The previous crossovers above zero have led to significant price rallies, and the latest positive crossover suggests that bitcoin's recent rally to ten-month highs above $30,000 may be only the first milestone in its upward journey. The bullish implication is consistent with bitcoin's tendency to experience outsized rallies in the months leading up to mining reward halvings, and the fourth reward halving is due in April next year.
(By Omkar Godbole)
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