Bitcoin metrics print “mother of all BTC bullish signals” for fourth time ever
A Bitcoin (BTC) price indicator has flashed green for just the fourth time ever this week in a major warning to bears.
In a chirping On February 16, crypto market analyst Mohit Sorout announced that the Dollar Cost Average (DCA) indicator now “suggests a raging bull market.”
DCA breakout last preceded 640% BTC price upside
The DCA indicator is the latest Bitcoin metric to turn bullish on long time frames, and is even gaining attention from major Bitcoin investment circles.
The buy signals are rare, and Sorout sees only three through Bitcoin’s history, each of which precludes serious BTC price upside.
“Today is the fourth time this signal suggests a raging bull market,” he wrote in comments, describing the event as “the mother of all btc bullish signals.”
DCA refers to an investment strategy where a buyer allocates a fixed amount of capital to gain exposure to an asset at set intervals. This could be buying $10 per week in Bitcoin, with the concept regularly highlighted as an optimal way to gain exposure to volatile cryptocurrencies.
The DCA indicator measures the relative profitability of a hypothetical DCA strategy involving $1 purchases per day for a year.
When it crosses into profitable territory, marked as 365 on its scale, large bull markets have historically begun, Sorout argues. An exception appears to be mid-2022, when a move above the 365 mark later reversed, and BTC/USD began its journey to multi-year lows near $15,600.
Nonetheless, amid an atmosphere of growing belief that Bitcoin’s 2023 recovery is ongoing, others were also willing to give the latest breakout the benefit of the doubt.
“Rare Massive Bitcoin Buy Signal,” Dan Tapiero, Founder and CEO of 10T Holdings, declared in a repost of Sorout’s findings.
Bitcoin Price Death Cross and a ‘Failed Breakout’
Beyond the DCA, another rare bull signal comes this month in the form of the Williams %R oscillator, Cointelegraph reported.
Related: Bitcoin Gained 300% in Year Ahead of Last Halving — Is 2023 Different?
However, depending on the time frame, the Bitcoin bull run signals do not point unequivocally to the moon yet.
Caleb Franzen, a senior market analyst at Cubic Analytics who flagged the outbreak, is warning that Bitcoin’s recent trip to six-month highs represents a “failed breakout.”
The largest cryptocurrency also faces a major hurdle in the form of several moving averages (MAs) overhead that act as resistance for much of 2022.
The views, thoughts and opinions expressed herein are those of the authors alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
