Pseudonymous crypto analyst Tech Dev says one metric is flashing a rare signal that a massive boost for Bitcoin (BTC) is incoming.
In a tweet, the analyst shares a Bitcoin chart with 3-week candles and a vortex indicator (VI), a metric that identifies trend reversals for any given asset.
“Bitcoin 3-week Vortex Indicator crossing…
As supply last active over 1 year ago exceeds 60%…
After Dormancy Flow bottomed…”
The vortex indicator metric measures two trendlines: VI+ and VI-. According to TechDev, Bitcoin’s two VI trendlines just crossed for only the third time since 2015. Every single crossing has resulted in a sizeable price boost for the leading crypto asset.
Next, the pseudonymous analyst explores Chaikin Money Flow (CMF), a metric measuring the volume-weighted average of accumulation and distribution over a set period.
Says TechDev of the indicator’s usefulness,
“[The CMF metric] takes into account candle closing performance relative to volume to infer the relative buy/sell pressure. Crosses of the 0 line suggest a pending trend reversal on that TF.”
Using the CMF metric, the analyst highlights how Bitcoin just crossed the bullish line for only the fifth time in the crypto asset’s history.
“Bitcoin 2-week Chaikin Money Flow crossing bullish for only the 5th time in its history.”
As with the Bitcoin vortex indicator metric, TechDev points out that each crossing of the CMF bull line has preceded uptrends in BTC.
Bitcoin is trading for $47,496 at time of writing, up 6.53% over the last 24 hours.
Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inboxFeatured Image: Shutterstock/Antiv/S-Design1689