A Bitcoin (BTC) price indicator has flashed green for just the fourth time this week to warn bears.
in one tweet On Feb. 16, crypto market analyst Mohit Sorout announced that the Dollar Cost Average (DCA) indicator is now “pointing to a raging bull market.”
The DCA breakout most recently preceded a 640% surge in BTC price
DCA is the latest bitcoin metric to turn bullish on long timeframes and is even getting the attention of large bitcoin investing circles.
His buy signals are rare, with Sorout only seeing three in Bitcoin’s history – but all of this prevented any serious upside potential in BTC’s price.
“Today is the fourth time this signal has indicated a raging bull market,” he wrote in comments, describing the event as “the mother of all BTC bullish signals.”
DCA refers to an investment strategy in which a buyer allocates a specified amount of capital in order to gain exposure to an asset at specified intervals. This could be, for example, buying $10 worth of Bitcoin per week, and the concept is regularly touted as the best way to engage with volatile cryptocurrencies.
The DCA indicator measures the relative profitability of a hypothetical DCA strategy with purchases of $1 per day for one year.
Once it reaches profitable territory, marked 365 on its scale, major bull markets begin, Sorout argues. An exception seems to come in mid-2022 when a move above the 365 level subsequently reversed and BTC/USD started its journey to multi-year lows near $15,600.
However, amid an atmosphere of rising confidence in Bitcoin’s ongoing recovery in 2023, others were also willing to give the recent breakout a helping hand on the side of the doubt.
“Rare Massive Bitcoin Buy Signal”, Dan Tapiero, Founder and CEO of 10T Holdings, explained in a repost of Sorout’s findings.
Bitcoin Price Death Crosses and a “Failed Breakout”
Beyond DCA, another rare bullish signal comes this month in the form of the Williams %R oscillator, Cointelegraph reported.
Related: Bitcoin Gained 300% in the Year Before the Last Halving – Will 2023 be Different?
However, depending on the time window, its Bitcoin bull run signals are not yet clearly pointing to the moon.
Meanwhile, Caleb Franzen, senior market analyst at Cubic Analytics, who signaled the breakout, is on hand warning that Bitcoin’s recent trip to a six-month high constitutes a “failed breakout.”
The largest cryptocurrency also faces a major hurdle in the form of multiple moving averages (MAs) overhead, which will act as resistance for much of 2022.
Data from Cointelegraph Markets Pro and TradingView also showed that two MAs formed a “death cross” for the first time this month.
BTC/USD 1-week candlestick chart (Bitstamp) with 50, 200MA. Source: TradingView
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