Bitcoin Recreates Last Buy Signal Before 2017 Bull Run

Bitcoin has experienced a strong rebound in the past few months. From the lows in March this year, Bitcoin has risen by more than 300%, from $3,500 at the time to $11,700.

The famous planB Bitcoin S2F pricing model predicts that the price of the currency will rise significantly after each halving.

While already impressive, Bitcoin continues to form a key buy signal, which could indicate more upside ahead. The last time the market formed a buy signal of this magnitude was in late 2016, just before the 2017 index super rally, when Bitcoin was trading below $1,000.

Bitcoin forms key buy signal

According to Crypto Quant data shared by crypto asset analysts, Bitcoin is about to form a long-term buy signal. The signal is the miner's Bitcoin deposit data, which tracks the amount of BTC reserves of entities associated with mining pools.

According to the chart, the indicator is expected to achieve a positive crossover, while the short-term moving average will be below the long-term moving average.

The signal is significant because it last appeared in late 2016, just before Bitcoin’s 2,000% super rally in 2017. The signal also preceded two other macro rallies that sent BTC exponentially higher. A host of other on-chain trends also indicate that Bitcoin’s long-term trend favors bulls.

On-chain analysis by CryptoQuant, chart of BTC’s price action since it began trading about a decade ago.

Analysts say the underlying trend favors Bitcoin bulls.

Macro investor Raoul Pal recently stated in an interview with the publication Stansberry Research that Bitcoin is likely to reach a price of $1 million within the next five years. He believes that investment from institutional investors will drive the cryptocurrency forward:

“From what I’ve heard from all the institutions, all the people I’ve talked to, the amount of money coming into the Bitcoin world is huge. There’s a lot of money that’s been sitting on the doorstep of Bitcoin — it just hasn’t been the right time to allow people to bring that money in, and that’s coming. But it’s on everybody’s radar, and there’s a lot of smart people working on it.”

Pal said he believes Bitcoin may be the best investment in existence right now due to macro trends.