An influential crypto analyst has revealed that a key technical indicator is now suggesting that Bitcoin (
BTC
) could be on the brink of a parabolic surge.
The pseudonymous analyst known as TechDev, with a following of 458,300 on the social media platform X, has pointed out that the Chaikin Money Flow (CMF) metric is indicating that Bitcoin may be heading towards a blow-off top in this cycle. In technical terms, a blow-off top is a chart pattern that shows a sudden price spike followed by a sharp decline.
According to TechDev, a Bitcoin blow-off top typically occurs after the 4W CMF breaks a certain line. The CMF is a metric that measures the volume-weighted average of accumulation and distribution over a specific time frame. TechDev’s analysis of a four-week chart reveals that the CMF turned green three times in Bitcoin’s history – in 2011, 2013, and 2016 – preceding significant price surges.
Additionally, TechDev has shared a chart that utilizes the Bollinger Bands bandwidth (BBW), a tool used to gauge price volatility and predict sharp price movements based on volatility contraction. The chart indicates that Bitcoin is currently forming a pattern similar to the one seen at the beginning of 2017, which was followed by a substantial price increase.
As per TechDev’s analysis, Bitcoin is currently trading at $66,388, experiencing a nearly 5% decrease in the last 24 hours. Despite this, the analyst remains optimistic about the potential for a parabolic surge in the near future.
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