A widely tracked economist says that Bitcoin is flashing a signal that has historically marked the bottom not only for BTC, but for all asset classes as well.
Alex Krüger tells his 139,200 Twitter followers that he’s closely watching the aggregated volume of Bitcoin, which covers both spot and perpetual markets across all exchanges.
[adinserter block="1"]According to the economist, many Bitcoin investors likely capitulated weeks ago after the aggregated volume of BTC printed a new all-time high.
“As a general rule, trading volume is the highest when markets capitulate, and such capitulation creates major bottoms. This weekly chart includes the aggregated Bitcoin volume for most BTC pairs (spot and perpetuals across exchanges). Volume hit its all-time high two weeks ago.”
Krüger also says that in the last two years, Bitcoin bottomed out after its volume skyrocketed to record highs.
“The week of March 12th, 2020 (2020 bottom) has the second highest volume ever. The week of May 19th, 2021 the third. The week of June 21st, 2021 (2021 bottom) the fourth. The week of May 9th, 2022 (Luna Apocalypse) the fifth.”
The economist highlights that the aggregated volume of BTC tracks the number of coins that changed hands instead of denominating it in the US dollar.
According to Krüger, denominating volume in BTC makes it comparable across time.
“By denominating volume in (Bitcoin), unit price and market cap become irrelevant. That’s the whole point.”
While Krüger says that BTC could already be in the process of carving a bottom, he notes that the leading digital asset won’t likely rally anytime soon.
“This is a pattern. Observable across assets and asset classes. Study it. Could come up with a very large sample size and even some loose probabilities. Pattern doesn’t mean once price bottoms it moons. There’s no juice at the moment.”
At time of writing, Bitcoin is changing hands for $19,150.
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