Bitcoin Flashing Bullish Signal That Has Historically Triggered a 46% Gain But Theres a Catch: IntoTheBlock

A bullish signal is flashing for Bitcoin (BTC) that previously led to huge gains, but the same metric also comes with a big warning.

Blockchain analytics firm IntoTheBlock says that Bitcoins volatility is dropping to significantly low levels that have historically come right before BTC soared.

In a new tweet, analysts at IntoTheBlock say that when trading volume remains at the current level for about five weeks, the king cryptos price soars by approximately 46%.

If Bitcoin follows the historic pattern, BTC would skyrocket from its value of $27,159 at time of writing to more than $39,600.

However, the firm notes that there were three times when the same signal preceded a 50% collapse.

“BTC volatility reaches historically significant lows.

60-day annualized volatility has fallen below 40% for the eighth time in the past five years.

On average BTC volume remains below this level for five weeks and results in a 46% price gain.

However, three crashes of 50% have followed similar conditions.

Source: IntoTheBlock/Twitter

According to IntoTheBlock, 64% of Bitcoin holders are in the money, or above the breakeven price, while approximately 33% are holding Bitcoin at a loss.Of the total Bitcoin owners, 69% have held their BTC stack for more than one year.

Also on the radar of the firms analysts is peer-to-peer payments network Litecoin (LTC), which has a halving event when miner rewards are cut in half in about 76 days. They say LTC is attracting a lot of attention on social media, which is a bullish signal.

“With the reward halving for Litecoin approaching, LTC saw a substantial increase in social chatter. Despite the recent uncertainty in the market, the talk about Litecoin has remained high. What do you think is next for Litecoin?”

Source: IntoTheBlock/Twitter

Litecoin is trading for $91.48 at time of writing, down 0.4% during the last 24 hours.

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This article was originally reported on The Daily Hodl.