Bitcoin Just Flashed ‘Very Rare’ Buy Signal, According to Crypto Hedge Fund CEO Su Zhu
https://ift.tt/3nkmaym
Su Zhu, co-founder and CEO of crypto hedge fund Three Arrows Capital says Bitcoin just flashed a rare bullish signal.
Zhu points out to his 447,000 Twitter followers that Bitcoin’s dormancy flow metric has just reached a level only seen five other times in history.
“Dormancy flow buy signal on $BTC, very rare, only six times in history.”
Dormancy flow refers to the average number of days that each spent coin had remained dormant before it was moved. The metric can be used to time market lows and assess whether the bull market remains in relatively normal conditions.
Another on-chain metric for Bitcoin that Zhu finds noteworthy is its illiquid supply. Illiquid supply refers to BTC in wallets with little history of selling. When illiquid supply goes up, it suggests an absence of sell pressure on BTC and raises chances of rallies.
“Illiquid supply has been rising sharply since July 2021, in line w the accumulation trend from Jan 2019 to Apr 2021.”
According to Zhu, Bitcoin is in a long accumulation period with an overall bullish market structure.
“Bitcoin is in a multi-year process of higher highs and higher lows, with 2021 being a relatively quieter year in a backdrop of sideways accumulation.
Buying tops or selling bottoms can be quite dangerous in this regime, leading to significant underperformance of buy+hold.”
At time of writing, Bitcoin is trading at $42,785, up 3.5% on the day but still down nearly 40% from its all-time high above $69,000 in November 2021.
Check Price Action
Don’t Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox
Follow us on Twitter, 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 loses 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.
Featured Image: Shutterstock/Sittipong Phokawattana
Cryptocurrency
