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A closely watched analyst points to a key historical metric as a sign that Bitcoin (BTC) may have finally bottomed out after an eight-month bull run.
Crypto enthusiast nickname TechDev says His 399,600 Twitter followers on the importance of year-long HODL waves, a metric that tracks Bitcoin that has been dormant for more than a year. During three previous instances where static BTC peaked in 2012, 2015 and 2019, a rally soon followed.
“1 year + HODL wave 200 day rate of change peaks above 0.1.
4 marks in 11 years.”
At the time of writing, Bitcoin is down less than one percent in the past 24 hours and is trading at $23,066.
TechDev then examines the performance of altcoins against the US Dollar Index (DXY) over nearly a decade, while drawing Fibonacci extensions suggesting altcoins may be primed to move higher if DXY falters.
“Altcoins Bouncing Off Long-Term TL [timeline] + previous ATH [all-time high] + 0.272.
DXY at long term TL + local TL + 1.414 after parabolic move.
Possible parabola collapse after 5 contact points and 1,414 to 2 TL expansion.
Watch for further confirmation of DXY analysis and altcoin push.”
The analyst concludes comparing The relative strength of Bitcoin against the top 50 Dow Jones stocks dating back to 2012. The relative strength index (RSI) is an indicator used by investors to measure the momentum of an asset’s trend, where a decline in the RSI indicates strong bearish momentum and vice versa.
TechDev provides a chart that shows similar upward price momentum, while highlighting key moments in 2012, 2016, 2020, and this year.
“Bitcoin and Dow Jones 50 Monthly RSI Interactions.”
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Disclaimer: The views expressed in The Daily Hodl are not investment advice. Investors should do their due diligence before making high-risk investments in Bitcoin, cryptocurrencies or digital assets. Please note that your transfers and transactions are at your own risk and that any losses are your responsibility. The Daily Hodl does not recommend the purchase or sale 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/BT Side
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