Bitcoin Indicator That’s Historically Predicted ‘Blow Off Tops’ Flashing Green, Says Analyst – Crypto News – Crypto News
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Bitcoin Indicator That’s Historically Predicted ‘Blow Off Tops’ Flashing Green, Says Analyst – Crypto News

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12 months ago

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A popular crypto analyst says that one key technical indicator is suddenly signaling Bitcoin (BTC) could go on a parabolic surge.

Pseudonymous analyst TechDev tells his 458,300 followers on the social media platform X that the Chaikin Money Flow (CMF) metric now suggests Bitcoin could print a blow-off top this cycle.

In technical analysis, a blow-off top is a chart pattern showing a sudden rise in price that is followed by a sharp decline.

“Bitcoin blowoff tops only happen after 4W CMF breaks this line.”

Source: TechDev/X

The CMF is a metric measuring the volume-weighted average of accumulation and distribution over a set period. TechDev’s four-week chart shows that the CMF flashed green three previous times in Bitcoin’s history, in 2011, 2013 and 2016, ahead of parabolic surges.

The analyst also shares a chart using the Bollinger bands bandwidth (BBW), a price volatility gauge that is meant to identify periods of impending sharp price movements based on volatility contraction. His chart suggests Bitcoin is forming a similar pattern as around the start of 2017 preceded by a massive price explosion.

“You’ve been here before. Forty-two months after the start of an already-ended long compression. Hovering at the prior high, pressed against the top band. Bandwidth squeezed and bounced. Expansion has just begun. Next leg poised to accelerate.”

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Source: TechDev/X

Bitcoin is trading for $66,388 at time of writing, down nearly 5% in the last 24 hours.

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Featured Image: Shutterstock/CI Photos/phanurak rubpol

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