This classic Bitcoin metric is flashing buy for first time since March 2020

cointelegraph.com:

Bitcoin (BTC) bulls may only need a pair of simple moving averages (SMAs) to determine if the bottom is in this halving cycle.

In a Twitter thread on June 2, Checkmate, lead on-chain analyst at crypto analytics firm Glassnode, flagged the Investor Tool metric hitting “buy the dip” territory.

The Investor Tool is a simple yet effective BTC price metric showing the potential for buyers to enjoy “outsized” returns.

Its creator, LookIntoBitcoin founder Philip Swift, aimed to deduce when BTC/USD is likely overbought or oversold.

The metric uses the two-year SMA and its 5x multiple. The two lines are plotted against spot price and have historically performed well at catching both generational tops and bottoms.

Now, BTC/USD is below the two-year SMA for the first time since March 2020, having crossed the line around one week before the Terra LUNA debacle sent Bitcoin to ten-month lows.

“Bitcoin Simple Moving Averages are edge when navigating bear markets,” Checkmate commented, adding that it had “entered the generational zone.”

While Bitcoin bulls are hardly out of the woods at $30,000, the Investor Tool's readings strengthen a narrative which is only just beginning to emerge among analysts.

Related: $32K Bitcoin price could turn the tides in Friday’s $160M BTC options expiry

As Cointelegraph reported, Arthur Hayes, former CEO of derivatives giant BitMEX, this week suggested that May's Terra-inspired trip to $23,800 may in fact mark a long-term BTC price floor after all.

Despite a large number of predictions calling for a crash to as low as $14,000, historical patterns may yet play a role in securing Bitcoin at or near current levels.

Even the Terra episode itself, in which nonprofit the Luna Foundation Guard (LFG) liquidated 80,000 BTC,