Renowned economist and founder of Capriole Investments, Charles Edwards, is making waves with a bold prediction. The Bitcoin Macro Index is indicating an ‘expansion,’ hinting at a potential surge akin to the historic 400% bull run.
Bitcoin’s Macro Index Sees 400% Surge
Charles Edwards, known for his insightful market analyses, has brought the Bitcoin Macro Index into focus. This macroeconomic indicator, designed to gauge the broader health of Bitcoin, is now showing signs of ‘expansion.’
Edwards suggests this could be a precursor to a remarkable surge in value, echoing the sentiments of the historic 400% bull run. Meanwhile, in recent times Bitcoin has showcased resilience, with a surge from $34,000 to $38,000, followed by a correction to around $36,500.
Charles Edwards considers this movement a crucial technical victory, emphasizing the significance of Bitcoin overcoming and holding above major resistance levels, particularly $35,000 on both weekly and monthly timeframes.
This consolidation above key resistance levels sets a bullish context in high-timeframe technical analysis. Edwards notes that the recent breakout into the 2021 range offers the most promising high-timeframe technical setup seen in years.
He outlines that, provided $35,000 holds on a weekly and monthly basis in November, the next substantial resistance lies within the range of $58,000 to $65,000.
Edwards Flags Expansion
Edwards’ market update centers around the shift in the Bitcoin Macro Index, a model that synthesizes over 40 metrics encompassing on-chain data, macro market indicators, and equity market influences.
This shift to ‘Expansion’ is only the third occurrence since the index’s inception and is historically associated with significant price rallies.
Further examining historical data, the Bitcoin chart reveals a 400% surge during the last bull run when the Macro Index entered the expansion phase. The first historical signal from the Macro Index in November 2016 led to a massive bull run of almost 2,600% until Bitcoin reached its then-all-time high of $20,000 in February 2018.
Short-Term Technical Caution
Charles Edwards provides a mixed short-term outlook, highlighting the derivative markets’ indication of overheating. The newly introduced ‘Bitcoin Heater’ metric, aggregating various derivatives market data, suggests potential retracement based on market risk indicators. Edwards acknowledges exceptions to historical norms but cautions about potential corrections or consolidations.
As the Bitcoin Macro Index enters the ‘Expansion’ phase, the crypto community eagerly awaits to see if history will repeat itself with a potential 400% bull run surge.