The Bitcoin Dollar Price Indicator (DCA) is firmly established in the bull market zone, while analysts are considering whether its signal is too positive.
The price indicator flashed green for the second time this week in a major bearish warning.
In a tweet on February 16, crypto market analyst Mohit Sorout said that the current dollar price signal (DCA) “points to a roaring bull market.”
The last DCA break was preceded by a 640% increase in BTC price.
The last Bitcoin indicator of long-term volatility, the DCA indicator is attracting attention from major Bitcoin investment circles.
His buy signals are rare, with Sorout seeing only three in Bitcoin’s history, all bucking BTC’s upward trend.
“Today marks the 4th time this token has sent the bull market screaming,” he wrote in the comments, describing the event as “the mother of all btc tokens.”
DCA refers to an investment strategy in which the buyer takes a fixed amount of money to earn a profit over a limited period of time. It is possible to buy $10 a week in Bitcoin, with the concept regularly cited as the best way to gain access to the volatile cryptocurrency.
The DCA indicator measures the profitability of the DCA strategy compared to buying $1 per day for a year.
As soon as it crosses into profitable territory, marked 365 of its levels, the biggest bull market in history begins, Sorout said. The exception seems to be in the middle of 2022 when the opposite action to the 365 mark, and BTC / USD began the journey to a multi-year low near $ 15,600.
However, in the atmosphere of increasing faith in the long-term return of Bitcoin 2023, others are still ready to give the last resort the benefit of the doubt.
“A very rare Bitcoin buy signal,” Dan Tapiero, founder and CEO of 10T Holdings, said in a review of Sorout’s results.
The Death of Bitcoin Price Crossed and “Registration Failed”
In addition to the DCA, another rare bull signal this month comes in the form of the Williams %R oscillator, Cointelegraph reports.
Related: Bitcoin Up 300% In Its Last Half Year – Will 2023 Be Different?
According to the period, however, the Bitcoin bull sign has not clearly indicated the month.
Caleb Franzen, a senior market analyst at Cubic Analytics who observed the pause, warned that Bitcoin’s latest trip to a six-month high represented a “failed reservation.”
The largest cryptocurrency also faces a major obstacle in the form of a multiple moving average (MA) that acts as a resistance for most of 2022.
Data from Cointelegraph Markets Pro and TradingView shows two MAs forming the first “cross” this month.