Crypto: Rare Bitcoin Signal Flashes: Will A 220% BTC Price Rally Follow?

Multiple long-term Bitcoin valuation models suggest that BTC’s drop to $60,000 opened up a rare discounted buying opportunity. Do traders and institutional investors agree?

Bitcoin (BTC) is trading below $69,000 on Tuesday, confirming the view that price consolidation is the most likely course over the short term. The sell-off to $60,000 and the subsequent recovery to $72,000 resulted in many BTC price indicators falling into what analysts believe to be a deep value zone, but will buyers reach the same conclusion?

Bitcoin’s realized price bands have aligned with a long-term accumulation zone that preceded new BTC highs.

Power Law quantile models place BTC near the lower 15% of its long-term log-log price corridor, a zone that has consistently appeared after prior cycle peaks.

Valuation and momentum metrics are clustering around the $40,000–$55,000 region, marking a statistically significant structural support area.

Bitcoin’s realized price and shifted realized price have successfully identified long-term accumulation zones since 2015.

Realized price reflects the average cost basis of all BTC last moved onchain whereas the shifted realized price smoothens this metric forward in time, capturing deeper-value zones during stronger drawdowns.

Currently, Bitcoin’s realized price sits near $55,000, while the shifted realized price is around $42,000.

Multiple years of historical data show that rallies following the re-test of these zones delivered big gains, as shown in the chart above. While returns have diminished over time, the structure still implies upside potential of 170% to 220%, aligning with targets above $150,000 in the next bullish period.

Bitcoin has typically consolidated for six to eight months after testing the realized price bands before resuming an upward trend and hitting new highs.

Source: CoinTelegraph