Bitcoin continues to consolidate in the high $50,000 area, meanwhile, its fundamentals are strengthening and seem to point towards a price breakout.
Analyst Ali Martinez has shared data from Glassnode to predict the timing for a new BTC price rally. According to the analyst, when the cryptocurrency surpasses the 1 million threshold in the metric Entity-Adjusted Dormancy Flow, historically BTC “goes parabolic.”
Despite Bitcoin’s nearly 1,500% increase in a year, it is still below this threshold. The analyst stated:
Despite the 1,465% surge that $BTC experienced since the March 2020 crash, the Bitcoin Entity-Adjusted Dormancy Flow has yet to move past the 1M threshold. When and if it does, #BTC could enter a new parabolic phase posting more gains than what we have already seen.
Conversely, Martinez stated that when the Entity Adjusted Dormancy is rejected before surpassing the one million threshold, Bitcoin’s price experiences a pullback. In 2021, this has happened at least twice back in January and