A closely watched crypto analyst says one Bitcoin (BTC) indicator is flashing green despite Monday’s correction below $60,000.
Pseudonymous analyst TechDev tells his 460,100 followers on the social media platform
“There has only been one other time in Bitcoin history when the two-week Gaussian channel turned green. The price’s consolidation at the previous high marked the midpoint of a parabolic move that few saw coming.
Gaussian channels are momentum indicators that can be used to identify price tops and bottoms. Looking at its two-week chart, the analyst suggests that Bitcoin is forming a similar pattern in 2017 that has led to a massive rally.
Then the analyst explores the Chaikin Money Flow (CMF), a metric that measures the volume-weighted average of accumulation and distribution over a given period.
Using the CMF metric, the analyst highlights that Bitcoin is above the bullish line for the fourth time on the four-week chart.
TechDev shares a chart showing that BTC was also above the same line in late 2016, early 2013, and early 2011 – just before Bitcoin initiated parabolic moves.
“First four-week parabolic money flow signal on Bitcoin since 2017…
The idea of ’extending cycles’ was abandoned due to an arbitrary definition of cycles. For someone else it never went away. But none of that really matters. BTC has been in an uptrend since its birth, and the same signal that caused the other three blowoffs is sounding again.”
Bitcoin is trading at $60,586 at the time of writing, down 4.6% in the past 24 hours.
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Generated image: DALLE3