Coin World News Report:
Renowned cryptocurrency analyst TechDev suggests that Bitcoin (BTC) may be in a bear market, seeking to overcome its weakness before experiencing a significant price surge.
This anonymous analyst shared a Bitcoin chart with his 464,000 followers on social media platform X, indicating that BTC is reflecting its price trend before the parabolic rise in 2017, after approximately 1,200 days of accumulation.
TechDev’s chart also includes the Net Unrealized Profit/Loss (NUPL) indicator, which measures the overall sentiment of market participants by tracking the unrealized profit/loss of all circulating coins.
According to his chart, this analyst believes that Bitcoin’s NUPL has gone through four different stages in a bull market cycle: hope, optimism, belief, and euphoria. He believes that Bitcoin is currently in the belief stage, which is the peak of the bull market’s rebound.
Bitcoin
Source: TechDev/X
TechDev shared another chart displaying the 16 different stages he believes exist in the Bitcoin market cycle.
He suggests that BTC is currently in a “bear market” phase, where a correction occurs due to concerns about overvaluation and the maturity before the end of the cycle, just before entering the euphoria phase of massive expansion.
Source: TechDev/X
TechDev also examined two indicators that he claims have a good track record in identifying the beginning and end of previous Bitcoin bull runs: the Relative Strength Index (RSI) and the Chaiken Money Flow (CMF) index. RSI is a momentum indicator, while CMF is a volume-weighted average of accumulation and distribution during a given period.
TechDev states,
“RSI is called a peak. CMF is called a gusher.”
Source: TechDev/X
Based on the trader’s chart, it seems to imply that RSI has not yet reached the downtrend resistance line, which marks the end of the previous bull market cycles. Meanwhile, CMF has just broken through the resistance level that previously signaled a significant Bitcoin price surge.
At the time of writing, Bitcoin’s trading price is $55,282.
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Generated image: DALLE3