Bitcoin (BTC) risks falling into a fresh bear market as a large collection of BTC price metrics has produced a “bearish divergence.”
In a social media discussion on March 27, Bitcoin commentators flagged troubling signals from the Capriole Investments’ Bitcoin Macro Index.
Bitcoin Macro Index slump “not great,” says creator
As BTC/USD struggles to return to the area around all-time highs, onchain metrics are beginning to lose their bull market edge.
The Bitcoin Macro Index, created by Capriole in 2022, uses machine learning to analyze data from a large number of metrics that founder Charles Edwards says “give a strong indication of Bitcoin’s relative value throughout historic cycles.”
“The model only looks at onchain and macro-market data. Uniquely, price data and technical analysis is not considered as an input in this model,” he explained in an introduction to the tool