Bitcoin Indicator Turns Bullish During Market Correction, Trader Reveals
A prominent crypto analyst has pointed out that a key Bitcoin indicator is showing positive signs despite the recent dip below $60,000. TechDev, a pseudonymous analyst, shared on X that this indicator suggests Bitcoin could be gearing up for a parabolic surge.
According to TechDev, the two-week Gaussian channel turning green has historically preceded significant upward movements in Bitcoin’s price. He mentioned a specific instance in Bitcoin’s history where a similar scenario led to an unexpected parabolic rally.
Gaussian channels are tools used to identify potential price peaks and troughs based on momentum. By analyzing a two-week chart, TechDev drew parallels between the current Bitcoin pattern and a setup from 2017 that preceded a major bull run.
The analyst also delved into the Chaikin Money Flow (CMF), a metric that gauges the volume-weighted average of accumulation and distribution over a defined period. Notably, Bitcoin has crossed above the bullish line on the four-week chart for the fourth time, indicating positive market sentiment.
TechDev illustrated this point by showcasing a chart that highlighted Bitcoin’s position above the same line during specific periods in history, notably before significant price surges.
In a tweet, TechDev emphasized the significance of the current money flow signal, comparing it to past instances that led to substantial market movements. Despite Bitcoin’s price currently at $60,586, representing a 4.6% decline in the last 24 hours, the analyst remains optimistic about the potential for a notable price rally.
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