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Mohit Sorout, a crypto analyst and co-founder of Bitazu Capital, says that Bitcoin has flashed an extremely important signal that has only appeared three times in its history: the DCA indicator. The signal that suggests a "raging bull market" made its fourth appearance today.
The occurrence of the indicator in the past led to massive rallies of 7,400% in the year 2015, 160% in the year 2019 and, most recently, a 640% rally in 2020.
The mother of all $btc bullish signals has flashed - DCA indicator
— Mohit Sorout 📈 (@singhsoro) February 16, 2023
Historically, it has flashed only thrice in btc's existence & each occurence led to massive rallies of
7400% (2015)
160% (2019)
640% (2020)
Today marks the 4th time this signal is suggesting a raging bullmarket pic.twitter.com/suMVlWFrzc
"The mother of all $btc bullish signals has flashed - DCA indicator. Historically, it has flashed only thrice in btc's existence & each occurence led to massive rallies of 7400% (2015), 160% (2019), 640% (2020). Today marks the 4th time this signal is suggesting a raging bullmarket," he wrote.
Over the previous 24 hours, Bitcoin (BTC) has increased by more than 12%, climbing to a little under $25,000. Early on Thursday, the biggest cryptocurrency in the world reached a high of $24,903, its highest point since Aug. 15. Since then, it has fallen to $24,407 as of this writing.
Before this, investors' worries about regulatory risk and the notion that the U.S. central bank still had a long way to go to control inflation caused a decline in Bitcoin prices.
Mixed indications
Bitcoin's daily chart recently produced a golden cross, often considered a bullish signal. This was contrasted with its weekly chart, which produced the first bearish death cross ever.
Some analysts, however, perceive the golden and death crosses as lagging indicators, occurring after most of the buying or selling has already occurred.
Tomiwabold OlajideVeteran trader Peter Brandt spoke on this: "A golden cross is a fun talking point and nothing more. No real market predictive utility. Peer-reviewed and trader-tested research testify that there is nothing magic about the chart construction."
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