A closely followed crypto analyst says that several indicators are all lining up to suggest that Bitcoin (BTC) is now ready to launch into a new chapter.
The pseudonymous analyst known as TechDev tells his 406,000 Twitter followers that he believes Bitcoin follows global cycles of dollar liquidity, which he portrays with a chart that pits Chinese ten year bonds (CN10Y) against the US dollar index (DXY).
He also points out that Bitcoin’s moving average convergence divergence (MACD) indicator, which aims to pinpoint reversals, has flipped bullish on the monthly timeframe.
“When liquidity flows, Bitcoin moves.
CN10Y/DXY broke above its one-year moving average…
And its monthly MACD has crossed bullish.
Five out of the last five times, a major BTC impulse followed.
What happens this time?”
TechDev reiterates the similarities in market cycles between the CN10Y/DXY and Bitcoin to support his thesis.
CN10Y / $DXY … leads #Bitcoin. pic.twitter.com/ztc3nQyaux
— TechDev (@TechDev_52) December 9, 2022
The analyst also compares the CN10Y/DXY chart with the Bitcoin dominance chart (BTC.D) and the total altcoin market cap, saying that the current market structure is particularly reminiscent of the crypto bull market in 2017.
“Altcoin market cap
Bitcoin dominance
CN10Y / DXY (global liquidity)
Today’s market setup remains far closer to 2017, than 2015 or 2019.”
The popular analyst says that BTC’s recent price action on the shorter timeframes suggests bullish continuation on the high timeframe. He points out the relatively small amount of red hourly candles for Bitcoin as of late.
“The market reaction to red hourly candles is a healthy sign for this high timeframe move.
When ‘buy the dip’ trends immediately and the $9,000 charts vanish, a [medium-term] correction becomes more likely.”
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Featured Image: Shutterstock/Mia Stendal
