A crypto strategist known for macro Bitcoin calls thinks that BTC is gearing up for a big price explosion en route to a blow-off top.
Pseudonymous analyst TechDev tells his 456,200 followers on the social media platform X that Bitcoin’s trading range on the five-day chart is at its tightest level in eight years.
A tight trading range in a bullish trend suggests that buying activity is inching closer to sellers’ desired price level, causing price compression that often leads to a breakout. TechDev uses logarithmic Bollinger bands to quantify Bitcoin’s volatility history.
Says TechDev,
“Historic move imminent.
Bitcoin’s five-day bullish compression has reached its highest level in eight years.”Â
As Bitcoin’s trading range becomes narrow, TechDev says the ensuing breakout will likely lead to steep and rapid rallies. The analyst highlights the BTC versus M1 money supply chart, which he says recently witnessed a “textbook breakout.”
According to TechDev, the breakout suggests that Bitcoin will ignite a parabolic surge and end this cycle with a blow-off top similar to what happened during the 2017, 2015 and 2013 bull markets.
“Significant.
Bitcoin has only seen blow-off tops after breakouts against M1 money supply.
And the longer it’s consolidated, the longer it’s run.
This breakout follows the longest consolidation yet.
In fact, it represents a textbook breakout of a five-year broadening wedge.
The last five years have been corrective against M1. BTC is once again impulsive against it for the first time since 2017.
We’ve never seen a Bitcoin breakout like this one.”Â
M1 money supply tracks the amount of liquidity sloshing in the US financial system by summing up all physical money including coins and currency, demand deposits, traveler’s checks and other checkable deposits.
At time of writing, Bitcoin is trading at $69,060, up more than 1% in the past day.
Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inboxCheck Price Action
Follow us on X, Facebook and Telegram
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Generated Image: DALLE3
