2 new metrics might predict market highs and lows

2 new metrics might predict market highs and lows

Those looking for any edge they can get in entering the crypto market have two new tools that might prove very useful. Researcher Willy Woo has tweeted a guided tour of new metrics, applied to Bitcoin Core (BTC), that help provide a well-rounded view of the cryptocurrency market.

The first new metric is called Delta Cap, which is a calculation of a cryptos realized market cap based on transactions created, minus the cryptos average market cap. What Delta Cap can provide to traders is the true bottom price of a crypto.

Top Cap, as is obvious from its name, provides the opposite of Delta Cap, providing the ceiling of where the market can go at the moment. It is calculated a little bit more arbitrarily, but the researchers believe the equation works. It represents the average cap multiplied by 35.

Applying both metrics to BTC’s trading history, they believe it provides a good idea of where the price could potentially go. The crypto reached resistance against the Delta Cap at the end of 2018 when it approached $3,200, and last hit the top cap at the end of 2017 when it neared $20,000. The price has seemingly never left the bounds of both of these metrics, but they have not published any application to other cryptocurrencies.

If the metrics work, it provides a decent guide to crypto investors of when the market has truly hit bottom, and when it might be growing beyond its britches. Considering BTC recovered from the Delta Cap low of $3,200, many would hope that it will start a climb to the current Top Cap of $48,724.

That’s not guaranteed to happen though, and these metrics are far from proven. The only thing that we know will truly build value in the cryptocurrency industry is stable continuous development and enterprise adoption. That can only conceivably happen with Bitcoin SV (BSV), as it follows the original vision of Satoshi Nakamoto for massive scaling and real world applications.

New to Bitcoin? Check out CoinGeek’s Bitcoin for Beginners section, the ultimate resource guide to learn more about Bitcoin—as originally envisioned by Satoshi Nakamoto—and blockchain.

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