New data suggests Bitcoin could see BTC price peak ‘double bubble’ in 2021

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Bitcoin (BTC) is facing a double bubble and will experience two price highs this year, new data suggests.

In an August 18 tweet, Charles Edwards, CEO of investment firm Capriole, pointed out that 2021 has a key similarity to the double bullish cycle of 2013.

Bitcoin braces for second peak

Bitcoin has divided opinions on whether its 2021 bull run is more like 2013 or 2017, the other two years immediately following the events of the global subsidy halving.

Looking at a measure, Unrealized Profit and Loss (UP&L), the answer can be simple. According to Edwards, only 2013 produced similar results for parts profitability.

New evidence of a Bitcoin double bubble, he summarized.

In the highs of previous cycles, rebounds have never been able to keep unrealized profit and loss above 0.5. Only the double bubble of 2013 and today have achieved this goal. Annotated graph of unrealized Bitcoin profits and losses. Source: Charles Edwards / Twitter

Such a prospect further adapts to the popular stock-flow pricing model, which demands an average BTC / USD reading of $ 100,000 or more this year. Its creator, PlanB, had previously given a low of $ 135,000 at the end of the year as a “worst case scenario” for Bitcoin.

Double bubble?

The results are not the only ones reaching the conclusion of the double bubble.

Related: No, Bitcoin Is Not Entering A 2018-Like Bear Cycle, New Data Suggests As BTC Targets $ 45,000

A dedicated monitoring tool, the Bitcoin Bubble Index also describes a two-phase price spike this year.

For context, the Bubble Index hit its all-time high of 119 on April 14, when BTC / USD hit its current all-time high of $ 64,500. Currently it measures 110, almost the same as the top, with Bitcoin at $ 44,500.

Bitcoin Bubble Index Chart vs. BTC / USD. Source: Bybt

In May, as Bitcoin was on the verge of hitting a local low of $ 29,000, data from on-chain analytics firm Glassnode also indicated that this year mimicked 2013.

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