Recently, an interesting phenomenon has been observed in the crypto market. Bitcoin valuation metrics are at their historical lows, while the relative valuation of gold has reached a new high since 2011, and the Bitcoin-to-Gold ratio has fallen near the bottom of the power-law curve. These three different indicators all point in the same direction — something that has not happened before.
Using standard deviations for clarity, Bitcoin's current valuation is in a severe undervaluation state (-2σ), while gold is the opposite, significantly overvalued (+2σ). This pattern is quite interestingly opposite to the market situation at the end of 2017.
Looking back at that cycle: Bitcoin was in an overbought state and then entered a long-term bear market; gold was extremely oversold and then began a multi-year rebound. Will history repeat itself? Are these rotation signals about to appear again? Based on the resonance of multiple indicators, a certain market turning point may be brewing.
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DeepRabbitHole
· 01-07 23:47
You say these three indicators all point in the same direction, but I feel a bit skeptical. Will history really repeat itself so obediently?
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ApeDegen
· 01-07 23:38
Damn, three indicators pointing in the same direction at once? That's gotta be really rare. Feels like a real turning point is about to come.
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If history repeats, I gotta jump in quick. Can't miss another opportunity.
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Honestly, what scares me most is this kind of "weird resonance." It usually means the market is about to change drastically.
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I missed out on that round in 2017. Can't just sit idle this time.
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Bitcoin -2σ, gold +2σ... Is this divergence hinting at something?
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I just wanna know how fast the rotation will happen once a turning point emerges. Those unprepared will get wiped out.
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Multiple indicator resonance sounds impressive, but when it comes to actual trading, you still gotta catch the right timing.
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Reverse-referencing the bottom of 2017 is interesting. How many people got trapped back then and are still stuck?
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Feels like another round of the "prediction vs reality" tug-of-war is about to start. No matter how accurate the indicators are, it still depends on whether the market accepts them.
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Would be awesome if it could rally like gold for several years, but I'm more afraid it keeps dropping and makes us look stupid.
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TokenAlchemist
· 01-05 02:55
ngl the -2σ bitcoin valuation alongside that gold +2σ divergence is literally screaming mean reversion... but everyone always forgets that historical parallels aren't arbitrage signals lmao
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ConfusedWhale
· 01-05 02:49
This data is satisfying to compare, I've really never seen such neat signals before.
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potentially_notable
· 01-05 02:46
This time it's really different, with three dimensions pointing to the bottom simultaneously... feels like something big is coming.
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GateUser-26d7f434
· 01-05 02:38
Hmm... These three indicators all point to the bottom at the same time. It sounds a bit too neat.
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Did the 2017 reversal come back? I feel like this time is different.
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Wait, gold -2σ and Bitcoin +2σ? That's opposite, indeed.
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History may repeat itself, but the real question is whether we can make money.
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Multiple indicators resonating... sounds impressive, but what about in practice?
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Is a turning point brewing? Then I'll just watch quietly; I’m not taking any action anyway.
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This layout is more extreme than in 2017, a bit scary.
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airdrop_huntress
· 01-05 02:35
This time, the three dimensions pointing together are not random signals; there's a bit of blood pressure rising.
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DegenWhisperer
· 01-05 02:29
Wow, three indicators moving in the same direction? If this really repeats the 2017 show, I have to go all in.
Recently, an interesting phenomenon has been observed in the crypto market. Bitcoin valuation metrics are at their historical lows, while the relative valuation of gold has reached a new high since 2011, and the Bitcoin-to-Gold ratio has fallen near the bottom of the power-law curve. These three different indicators all point in the same direction — something that has not happened before.
Using standard deviations for clarity, Bitcoin's current valuation is in a severe undervaluation state (-2σ), while gold is the opposite, significantly overvalued (+2σ). This pattern is quite interestingly opposite to the market situation at the end of 2017.
Looking back at that cycle: Bitcoin was in an overbought state and then entered a long-term bear market; gold was extremely oversold and then began a multi-year rebound. Will history repeat itself? Are these rotation signals about to appear again? Based on the resonance of multiple indicators, a certain market turning point may be brewing.