Last chance to buy? – Key figure predicts further high-flying for Bitcoin
According to Stack Funds, Bitcoin’s MCTC rate indicates a further upward trend for Bitcoin.
Crypto investors „don’t have much time“ before Bitcoin (BTC) continues to rise and even surpass the $20,000 mark, according to a new investment report.
The „Weekly Report“ of the Asian crypto investment fund Stack Funds accordingly pointed out on 10th December that one key figure in particular pointed to a further surge by Bitcoin Code platform in the market-leading crypto currency.
MCTC rate at old strength
According to the report, the so-called „Market Cap To Thermo Cap Ratio“ (MCTC) is currently expected to be similarly strong as in the record run of 2017, when Bitcoin had climbed from under USD 1,000 to USD 10,866.
The MCTC rate considers Bitcoin’s market capitalisation („market cap“) and sets it in relation to the total turnover of Bitcoin Mining since the introduction of the crypto currency („thermal cap“).
This week, the MCTC rate is 17, a value that was also on the table in mid-2017 in the run-up to the record run. Twice in the history of Bitcoin, a subsequent upward trend began after a MCTC level of 17.
„The MCTC rate is currently at 17, which was last seen during the 2019 uptrend. In addition, this value is reminiscent of the record run in 2017, when the MCTC fluctuated around a value of 20, whereupon it went steeply upwards“, as the investment report notes in this context.
From this, Stack concludes that Bitcoin will soon see a significant recovery, which is good news for investors, but may leave interested buyers with little opportunity to invest in the crypto currency.
MCTC rate of Bitcoin. Source: Stack Funds
Accordingly, they write: „As the MCTC rate is currently still at the lower end of its range, we expect that there will still be buying opportunities, but there may not be much time before the $20,000 mark is broken and the window closes“.
What is the next step?
In the last 24 hours, Bitcoin has recovered after an interim period of weakness pushed the previous sideways movement back below $18,000.
At the time of going to press, the Bitcoin exchange rate is hovering around the $18,300 mark, with traders hoping that a new support can be established.
However, as Cointelegraph reported, there is no sign of clear support above $16,200 so far, making the psychologically important $20,000 mark all the more important for further development.
Cointelegraph Markets Analyst Michaël van de Poppe sees the $19,400 mark as a crucial hurdle that needs to be jumped in order to reverse the recent downturn into an upward trend.
„If we want to return to the upward trend and attack the record high, we must first climb above this range,“ the expert said on Thursday.