Markets
A ‘historic setup’ is now underway as Bitcoin enters a bullish resurgence, crypto analyst says
An analyst known for his longer-term crypto calls says Bitcoin (Bitcoin) and digital assets are in the midst of a “historical pattern.”
Pseudonymous analyst TechDev shares a chart with his 465,000 followers on social media platform X showing the market cap dominance of cryptocurrencies compared to Tether USDT.
TechDev’s chart suggests that the cryptocurrency market cap is poised to gain further dominance at the expense of USDT after bouncing off a strong support level, implying that traders will convert their stablecoins into digital assets.
“Crypto dominance against USDT.
Of all cyclical bull markets, this is the first breakout and first macroeconomic retest in history.
Historical configuration.
The graph indicates that the previous runs may have been warm-ups.
Source: Technical Development/X
TechDev shares another chart showing what it believes to be the 16 different stages of the Bitcoin market cycle.
He believes that BTC is currently in a “bear trap” phase where a “correction fueled by overvaluation concerns and premature fears that the cycle is over” is driving prices lower.
But according to the analyst’s chart, Bitcoin will soon enter the “renewed optimism” phase where “buyers will warm up to the market again.”
Source: Technical Development/X
As Bitcoin is about to enter a new phase of the market cycle, TechDev highlights that global liquidity is the main driver of BTC prices.
He shares another chart comparing BTC to its overall liquidity measure, aligned with the Fisher Transform indicator, which aims to identify trend reversals.
The chart seems to suggest that macroeconomic turning points for Bitcoin and global liquidity have historically occurred every 3.75 years.
“Global Liquidity <– –> Bitcoin.
3.75 years. The next tweet hit an all-time high.
Source: Technical Development/X
At the time of writing, Bitcoin is trading at $63,024, up 4.74% from the previous day.
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Disclaimer: Opinions expressed on The Daily Hodl are not investment advice. Investors should do their own due diligence before making any high-risk investments in Bitcoin, cryptocurrencies or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
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