A Bitcoin (BTC) price indicator has flashed green for the fourth time this week in a major warning to bears.
in a cheep On Feb. 16, crypto market analyst Mohit Sorout announced that the dollar cost average (DCA) indicator was now “suggesting a raging bull market.”
DCA Breakout Last Preceded BTC Price Rise of 640%
The latest Bitcoin metric to turn bullish over extended time periods, the DCA indicator is even garnering attention from mainstream Bitcoin investment circles.
Its buy signals are rare, with Sorout seeing only three throughout Bitcoin’s history, each excluding a serious BTC price rise.
“Today marks the fourth time this signal suggests a raging bull market,” he wrote in the comments, describing the event as “the mother of all BTC bull signals.”
the mother of all $btc bullish signals have flashed – DCA indicator
Historically, it has blinked only three times in btc’s existence and each occurrence led to massive rallies of
7400% (2015)
160% (2019)
640% (2020)Today is the fourth time that this signal suggests a raging bull market. pic.twitter.com/suMVlWFrzc
— Mohit Sorout (@singhsoro) February 16, 2023
DCA refers to an investment strategy whereby a buyer allocates a fixed amount of capital to gain exposure to an asset at set intervals. This could be buying $10 a week worth of Bitcoin, and the concept is regularly touted as an optimal way to gain exposure to volatile cryptocurrencies.
The DCA Indicator measures the relative profitability of a hypothetical DCA strategy involving purchases of $1 per day for one year.
Once it crosses into profitable territory, marked 365 on its scale, major bull markets have historically begun, Sorout argues. An exception appears to be in mid-2022 when a move above the 365 mark was subsequently reversed, and BTC/USD began its journey to multi-year lows near $15,600.
Nonetheless, amid an atmosphere of growing faith in Bitcoin’s enduring recovery in 2023, others were also willing to give the latest breakout the benefit of the doubt.
“Rare Bitcoin Mass Buy Signal,” Dan Tapiero, Founder and CEO of 10T Holdings, declared in a new publication of Sorout’s findings.
Bitcoin Price Death Crosses and a “Failed Breakout”
Beyond DCA, another rare bullish signal this month comes in the form of the Williams %R oscillator, Cointelegraph reported.
Related: Bitcoin Gained 300% in the Year Before the Last Halving: Is 2023 Any Different?
However, depending on the time frame, its Bitcoin bull run signals still do not point unequivocally to the moon.
Caleb Franzen, a senior market analyst at Cubic Analytics who flagged the break, is warning that Bitcoin’s latest trip to six-month highs represents a “failed breakout.”
Phew. pic.twitter.com/U9BpVVhzaq
—Caleb Franzen (@CalebFranzen) February 16, 2023
The largest cryptocurrency also faces a major hurdle in the form of multiple moving averages (MAs) acting as resistance for much of 2022.
Data of Cointelegraph Markets Pro and TradingView it also showed two MAs forming a “cross of death” for the first time this month.
The views, thoughts and opinions expressed here are those of the authors alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
