Bitcoin

James

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  Bitcoin chart signals are pointing to an incoming macro bottom level, according to a BTC price metric with a flawless history. 
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<div class="cointelegraph">
 <p>Bitcoin (BTC) may offer investors a rare chance to buy at a support zone with a “100% long hit rate,” new <a rel="dofollow" title="Category Analysis" href="https://thebittimes.com/analysis.html">Analysis</a> says.</p>
 <p>In its latest Update piece on Aug. 29, crypto asset manager Capriole Investments told investors to watch for a BTC price dip to $24,000.</p>
 <h2 id="capriole-founder-very-confident-in-23-000-btc-price-support">Capriole founder "very confident" in $23,000 BTC price support&nbsp;</h2>
 <p>Bitcoin continues to track sideways around $26,000, but there is no shortage of market participants predicting further BTC price downside.</p>
 <p>$25,000 remains a popular target, but for Capriole, long-term trend lines with an impressive history are of greater interest.</p>
 <p>Chief among them are Bitcoin’s weekly support zone at $24,000 and its so-called “Electrical Price” (EP). This refers to the average miner’s electricity bill per BTC worldwide, and currently sits at just over $23,000.</p>
 <p>EP has acted as strong support on long timeframes throughout Bitcoin’s history, with the dip to two-year lows in November 2022 being no exception. In late December last year, EP hit lows slightly above $14,000.</p>
 <p>Capriole thus describes EP as a “historically hard <a rel="dofollow" title="price" href="https://thebittimes.com/tag/price.html">price</a> <a rel="dofollow" title="floor" href="https://thebittimes.com/tag/floor.html">floor</a> and level with a 100% long hit rate.”</p>
 <p>“Together these <a rel="dofollow" title="price" href="https://thebittimes.com/tag/price.html">price</a> points give very strong confluence from a fundamental and technical perspective to the opportunity that $23-24K presents, should we get there,” it wrote about the technical weekly level and EP, respectively.</p>
 <p>In part of a subsequent X post, Capriole additionally described the trend lines as “promising and rare structures” for Bitcoin “worth paying attention to.”</p>
 <p>Continuing, Capriole founder Charles Edwards said that $23,000 should act as “rock solid support.”</p>
 <p>“I am feeling very confident in $23K being a rock solid support and an incredible long-term opportunity if we get there in the next few weeks,” he told X subscribers on the day. </p>
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  “Electrical Cost has a 100% hit rate through Bitcoin's history. It's my favorite long-term Bitcoin metric.”
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  <img src="https://cdn.thebittimes.com/images/2023/08/29/073ab470e9e74c7532f2efe644a5569f.webp">
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   <em>Bitcoin Production Cost vs. Electrical Price vs. BTC/USD chart. Source: Capriole Investments</em>
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 <h2 id="bitcoin-miner-pain-on-the-horizon">Bitcoin miner pain on the horizon?</h2>
 <p>BTC/USD traded close to $26,000 at the Aug. 29 Wall Street open, per data from Cointelegraph Markets Pro and TradingView.</p>
 <p><strong><em>Related: Wen moon? Bitcoin halving cycle hints at Q4 as smart money ‘buys the rumor’</em></strong></p>
 <p>Analyzing miners’ financial buoyancy, James Straten, research and data analyst at crypto insights firm CryptoSlate, predicted a rerun of BTC <a rel="dofollow" title="price" href="https://thebittimes.com/tag/price.html">price</a> behavior from 2019, as the market laid the foundations of its next bull run.</p>
 <p>“Bitcoin miner revenue is currently sitting at $25.5M. Just sitting above the 365SMA of $22.5M,” he noted.</p>
 <blockquote>
  “It looks very reminiscent of the 2019 playbook. Should break below soon.”
 </blockquote>
 <figure>
  <img src="https://cdn.thebittimes.com/images/2023/08/29/4a4857842ba6f95026ff35a2a621de52.webp">
  <figcaption style="text-align: center;">
   <em>Bitcoin miner revenue chart. Source: James Straten/X</em>
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 <p>Accompanying data from on-chain analytics firm Glassnode showed miners earning less than their yearly average into 2020.</p>
 <p>Straten built on findings from Dylan LeClair, senior analyst at digital asset fund UTXO Management, who described the phenomenon as “tradition.”</p>
 <p class="post-content__disclaimer">This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision. </p>
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<p>Source: <a rel="dofollow" target="_blank" href="https://thebittimes.com/bitcoin-metric-with-100-long-hit-rate-predicts-23k-btc-price-floor-tbt60798.html">https://thebittimes.com/bitcoin-metric-with-100-long-hit-rate-predicts-23k-btc-price-floor-tbt60798.html</a></p>

Bitcoin metric with '100% long hit rate' predicts $23K BTC price floor

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