$BTC: Crypto Analyst Explains Why We Could Expect a Bitcoin Rally Soon
The flagship cryptocurrency Bitcoin ($BTC) has flashed a rare bottom signal for only the fourth time in its existence, suggesting the bear market may soon be over and that BTC’s price could soon start recovering after at one point being down 74% from its peak.
According to widely-followed cryptocurrency analyst TechDev, Bitcoin’s 1-year HODL waves metric has seen its 200-day rate of change peak over 0.1 for the fourth time in 11 years, after happening in 2012, 2015, and 2019 before massive price rallies occurred.
The HODL waves metric, it’s worth noting, keeps tracking Bitcoin that has remained dormant for specific periods of time as the flagship cryptocurrency’s circulating supply grows. It’s used to gauge network activity and long-term investor sentiment.
The cryptocurrency analyst also shared with their nearly 400,000 followers on the microblogging platform that altcoins’ performance against the U.S. Dollar Index (DXY), which is “an index (or measure) of the value of the United States dollar relative to a basket of foreign currencies,” over nearly a decade suggest altcoins may be primed to move higher. The other fiat currencies included in the DXY are EUR, GBP, JPY, CAD, SEK, and CHF.
The analyst added they are “watching for further confirmation of DXY breakdown and altcoin impulse.”
As CryptoGlobe reported, Bloomberg Intelligence analyst Mike McGlone has suggested that the flagship cryptocurrency Bitcoin ($BTC) could “outperform” other assets in the second half of the year as it moves “toward global collateral” with performance aligned to that of Treasury bonds or gold.
The analyst, as Daily Hodl reports, also pointed to Bitcoin’s relative strength index (RSI) against the Dow Jones 50, dating back to 2012. The RSI, it’s worth noting, is a momentum indicator used to gauge whether an asset is overbought or oversold.
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