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.”
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.”
Bitcoin is trading for $66,388 at time of writing, down nearly 5% in the last 24 hours.
Don’t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Check Price Action
Follow us on X, Facebook and Telegram
Surf The Daily Hodl Mix
 
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/CI Photos/phanurak rubpol
Click Here to Read the Full Original Article at Bitcoin News – The Daily Hodl…
