Crypto Analyst: Market Indicators Signal Incoming Bitcoin Rally
According to a prominent crypto analyst, known as TechDev, one market indicator is showing signs of a large scale rally coming for Bitcoin (BTC).
TechDev shared with his 377.4K followers on Twitter Bitcoin’s 3-week candle chart candles and a vortex indicator (VI), a metric often used to identify the start of a new trend or the continuation of an existing trend within financial markets.
“Bitcoin 3-week Vortex Indicator crossing…
As supply last active over 1 year ago exceeds 60%…
On a chart, VI+ and VI− will be seen to intersect each other at a change of trend, and begin to diverge ever wider as the strength of a trend increases. When VI+ is larger and above VI−, the market is trending up. Conversely, when VI− is bigger and above VI+, the market is trending down.
Looking at the analyst’s chart, Bitcoin’s two VI trendlines just crossed for only the third time since 2015. Historically, every time the lines have cross, it has led to a large price uptick for BTC.
Another metric that TechDev uses is Chaikin Money Flow (CMF), a metric measuring the volume-weighted average of accumulation and distribution over a certain time frame. He explains:
“(CMF) takes into account candle closing performance relative to volume to infer the relative buy/sell pressure. Crosses of the 0 line suggest a pending trend reversal on that TF.”
Takes into account candle closing performance relative to volume to infer the relative buy/sell pressure. Crosses of the 0 line suggest a pending trend reversal on that TF.
