bt-crow.com
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Co-founder and CEO of cryptocurrency hedge fund Three Arrows Capital Su Zhu said Bitcoin showed a rare bullish signal
According to him, the rate of “dormant bitcoin flow” has reached a level that has been observed only 5 times so far:
“A signal to buy on a dormant bitcoin stream is very rare. Taking into account the current one, it was observed only 6 times in history “
Sleeping Stream is characterized by the average number of days that each spent coin was inactive before being moved. This indicator can be used to determine the time of market lows and assess the bull market.
Zhu uses another metric for Bitcoin – illiquid supply volume, which is characterized by the amount of BTC in wallets with little sales history. In case of an increase in the illiquid supply, we can talk about the absence of pressure on BTC from sellers, which increases the likelihood of a rally:
“The illiquid supply has skyrocketed since July 2021. An analogy can be drawn with the accumulation trend from January 2019 to April 2021 “
According to Zhu, Bitcoin is in a long period of accumulation with an overall bullish market structure:
“Bitcoin is in a multi-year process of higher highs and higher lows, with 2021 becoming calmer and accumulating mostly on the sidelines. In this mode, buying at the peaks or selling at the bottom can be quite dangerous, which will significantly worsen the profitability of the “buy + hold” option “
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