This indicator will serve as a signal for the parabolic part of the bull market.
As the cryptocurrency market looks to unleash some momentum and begin what appears to be a short-term respite, it’s important to take a step back and look at the bigger picture.
Behind the scenes, the crypto market is operating at full speed. Venture capital investment is at cycle highs, BTC ETF inflows are eating up already-short exchange supply, and there are rumors of whales getting calls from exchange OTC desks looking to buy BTC.
Meanwhile, after rising sharply in recent months, Bitcoin looks increasingly in need of a short-term respite before resuming its march toward all-time highs .
One detail that most BTC and ETF enthusiasts overlook is an early indicator of GBTC in the 2021 cycle. When demand for BTC and ETH began to go parabolic in late 2020 and early 2021, GBTC and its counterpart ETHE traded at a significant premium to their underlying NAV (their holdings of BTC or ETH) as institutional demand outstripped supply. value) can be used for creation.
In this cycle, I firmly believe that an amplified version of this phenomenon will be the first sign of the impending parabolic phase of the bull market. To be clear, my hypothesis is that we will see a significant increase in the BTC ETF’s premium (relative to its underlying NAV) in the weeks leading up to the first giant green BTC candle.
Why?
Our BTC trading balance hit a record low
The halving will further affect the available supply for ETF issuance
Current The pace of creation has consumed all available excess supply, which is the main reason any price pullback will be very short-lived.
As prices go up, so do creations, which drives prices up, and increases creations…. The vicious cycle and secrets of the parabolic phase of the bull market.
Follow the top four BTC ETFs: IBIT, ARKB, BITB and FBTC. When they start trading above NAV for more than a few days, buckle up because that's when it will take off in full force.
The clock is ticking...⏰
Good luck.
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Cointelegraph