Key facts
- A Bitcoin miner indicator has flashed a buy signal, according to 10X Research.
- The signal has historically preceded strong gains, with an 80% positive hit rate.
- The median return following the signal has been 58.6%, with average gains around 41%.
- Bitcoin has surpassed $78,000, up 2% in 24 hours and 24% in the past month.
- Market watchers are awaiting US FOMC interest rate decisions and the CLARITY Act vote.
A Bitcoin miner indicator has flashed a buy signal, suggesting a potential rally of around 40% for the cryptocurrency, according to institutional research firm 10X Research. The signal has historically preceded strong gains, having been triggered 10 times previously, with eight instances resulting in positive returns.
10X Research noted that the median return across these 10 occurrences was 58.6%, while the average gain was approximately 41%. If history repeats, this could indicate a significant upside for Bitcoin. The indicator's signal comes as Bitcoin's price structure shows signs of recovery, with BTC trading above $78,000, marking a 2% increase in the last 24 hours and a 24% surge over the past month.
However, the firm cautioned that historical performance does not guarantee future results, and two previous instances of the signal triggered downside moves of 24% and 40%. Market participants are also anticipating key events this week, including the US Federal Reserve's FOMC interest rate decision and the Senate's vote on the CLARITY Act, which could influence Bitcoin's price. The CME FedWatch Tool indicates a 90.1% probability of a Fed rate hike, impacting investor risk appetite. Both Goldman Sachs and JPMorgan expect a rate hike this week, with JPMorgan suggesting another potential increase in December, fueling discussions about the impact of higher rates on riskier assets like Bitcoin.