A widely followed crypto analyst is predicting an unprecedented bullish move in Bitcoin (BTC) based on two key indicators.
Pseudonymous analyst TechDev tells his 419,400 followers on the social media platform
“The monthly crypto market cap is at its highest compression ever.
I believe there is a historic step ahead.”
The trader’s chart uses the Bollinger bands bandwidth (BBW), a price volatility gauge where the upper and lower bands widen when volatility decreases, while the bands shrink when volatility is about to explode.
According to the chart, BBW is currently lower than the levels that preceded massive upside moves in both 2016 and 2020.
Using the same BBW metric, the trader can say that Bitcoin appears to be on the verge of an outbreak even bigger than the one in 2020.
“Tightest monthly compression since 2016. Stronger than 2020.”
The trader too looks like on the vortex indicator metric, which measures two trend lines: VI+ and VI-. He says it’s only the third time Bitcoin’s two VI trendlines have crossed on Bitcoin’s bimonthly chart since 2016. The previous two crosses resulted in massive price moves to the upside for the leading crypto asset.
“Two-month vortex peaks, before maximum compression.”
Bitcoin is trading at $34,699 at the time of writing.
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Generated image: Midjourney