This classic Bitcoin metric is flashing buy for first time since March 2020


Bitcoin (BTC) bulls may only need a pair of simple moving averages (SMAs) to determine if this halving cycle is bottom.

In a Twitter thread on June 2, Checkmate, principal on-chain analyst at crypto analytics firm Glassnode, Flagged The Investor Tools metric is hitting “buy the dip” territory.

Bitcoin Enters “Generational Zone” for Investor Tools

The Investor Tool is a simple yet effective BTC price metric showing the ability of buyers to enjoy “outside” returns.

Its creator, Philip Swift, founder of LookIntoBitcoin, aims to find out when BTC/USD may be overbought or oversold.

The metric uses a two-year SMA and its 5x multiplier. The two lines are plotted against the spot price and have historically done well to capture both generation tops and bottoms.

Now, BTC/USD is below the two-year SMA for the first time since March 2020, almost a week before Terra Luna, now known as Luna Classic (LUNC), crossed the line, debacle by bitcoin. sent to a ten-month low.

“Bitcoin Simple Moving Average has the edge when navigating bear markets,” commented Checkmate, adding that it had “entered generational zone.”

Bitcoin Investor Tool Chart. Source: Glassnode

Hayes ‘More Confident’ Below $25,000 After Selling LFG BTC

Although bitcoin bulls are barely out of the $30,000 woods, investor tools’ readings reinforce a narrative that is just beginning to emerge among analysts.

related: $32K Bitcoin Price Could Turn the Tide in Friday’s $160M BTC Options Expiry

As Cointelegraph reported, Arthur Hayes, the former CEO of derivatives giant BitMEX, suggested this week that May’s Terra-inspired trip to $23,800 could indeed mark a long-term BTC price floor.

Historical patterns may still play a role in securing bitcoin at or near current levels, despite a large number of predictions for a crash to as low as $14,000.


Even the Terra episode, in which the non-profit Luna Foundation Guard (LFG) liquidated 80,000 BTC, could have found solid support, Hayes wrote.

He explained, “At the bottom, a typically impenetrable strong arm may be forced to sell because of the illiquid regime that appears in their trading books. LFG is one such seller. Beating 80,000 physical bitcoins is quite a feat. ”

“After considering the nature in which these bitcoins were sold, I believe even more that the $25,000 – $27,000 area is the bottom of this cycle for bitcoin.”

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