Bitcoin (BTC) on Track for a New All-Time High, Says Analyst
A popular crypto analyst with a significant following believes that Bitcoin (BTC) is meeting the necessary conditions for another explosive rally to new all-time highs. The analyst, known as TechDev, has identified a “3-prong signal” that has preceded previous BTC rallies to record levels.
The Three Criteria for a BTC Rally
TechDev’s analysis includes three key indicators. The first is a comparison between his own “global liquidity signal” and the balance sheets of major central banks. This liquidity signal aims to show global cycles of dollar liquidity by comparing the dollar index (DXY) with Chinese 10-year bonds (CN10Y).
The other two indicators are the moving average convergence divergence (MACD) and the monthly vortex, both of which have recently crossed into bullish territory according to traditional interpretation.
On-Chain Activity Similar to Previous Bull Run
In addition to these indicators, TechDev also shares data from analytics firm Glassnode that suggests certain on-chain activity is behaving similarly to a previous bull run. The data shows an increase in dormant BTC held for over a year, while the rate of change for this metric gradually declines below zero.
This pattern, marked by green circles in TechDev’s analysis, also occurred during the 2015-2016 market cycle.
Hot Take: Bitcoin Poised for New All-Time Highs
Based on TechDev’s analysis, Bitcoin appears to be meeting the necessary criteria for another significant rally. The combination of the “3-prong signal” and similarities in on-chain activity to previous bull runs suggests that BTC could be on track for new all-time highs. However, as with any investment, it’s important to consider the risks and volatility associated with cryptocurrencies. Stay informed and make decisions based on your own research and risk tolerance.
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