Bitcoin Just Flashed ‘Very Rare’ Buy Signal, According to Crypto Hedge Fund CEO Su Zhu

Su Zhu, co-founder and CEO of crypto hedge fund Three Arrows Capital says Bitcoin simply flashed a uncommon bullish sign.

Zhu factors out to his 447,000 Twitter followers that Bitcoin’s dormancy circulation metric has simply reached a stage solely seen 5 different occasions in historical past.

“Dormancy flow buy signal on $BTC, very rare, only six times in history.”

Source: Su Zhu/Glassnode/Twitter

Dormancy circulation refers to the typical variety of days that every spent coin had remained dormant earlier than it was moved. The metric can be utilized to time market lows and assess whether or not the bull market stays in comparatively regular circumstances.

Another on-chain metric for Bitcoin that Zhu finds noteworthy is its illiquid provide. Illiquid provide refers to BTC in wallets with little historical past of promoting. When illiquid provide goes up, it suggests an absence of promote stress on BTC and raises probabilities of rallies.

“Illiquid supply has been rising sharply since July 2021, in line w the accumulation trend from Jan 2019 to Apr 2021.”

Source: Su Zhu/Glassnode/Twitter

According to Zhu, Bitcoin is in a protracted accumulation interval with an total bullish market construction.

“Bitcoin is in a multi-year course of of upper highs and better lows, with 2021 being a comparatively quieter 12 months in a backdrop of sideways accumulation.

Buying tops or promoting bottoms will be fairly harmful on this regime, main to vital underperformance of purchase+maintain.”

At time of writing, Bitcoin is buying and selling at $42,785, up 3.5% on the day however nonetheless down almost 40% from its all-time excessive above $69,000 in November 2021.

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Disclaimer: Opinions expressed at The Daily Hodl aren’t funding recommendation. Investors ought to do their due diligence earlier than making any high-risk investments in Bitcoin, cryptocurrency or digital belongings. Please be suggested that your transfers and trades are at your individual threat, and any loses chances are you’ll incur are your duty. The Daily Hodl doesn’t advocate the shopping for or promoting of any cryptocurrencies or digital belongings, neither is The Daily Hodl an funding advisor. Please word that The Daily Hodl participates in internet affiliate marketing.

Featured Image: Shutterstock/Sittipong Phokawattana




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