Co-founder of the cryptocurrency hedge fund Three Arrows Capital, Su Joo, tweeted that a rare indicator for buying bitcoin – Dormancy Flow, was triggered in the market. In the entire history of bitcoin, the signal has been triggered only 6 times.
Dormancy Flow shows the period during which most bitcoins are stored in wallets without moving. The prolonged period of “sleeping bitcoins” says that the coins are not involved in trading and sellers do not exert significant pressure on the bitcoin rate.
Dormancy flow buy signal on $ BTC, very rare, only six times in history pic.twitter.com/eNU5lY9sOH
— Zhu Su (@zhusu) January 11, 2022
Every time the indicator worked earlier, it follows from the above chart that it really gave a reliable signal to buy BTC. The last time the Dormancy Flow worked was in mid-2021, when the rate of the first cryptocurrency dropped to $ 31,000. Later, the rate reached new all-time highs at around $ 69,000.
In its second message Su Zhu emphasized that the number of fixed coins has been growing since July 2021, which means that Bitcoin is in a rather long phase of accumulation.
According to a study by investment bank JPMorgan, only 5% of the bank’s customers expect bitcoin to rise above $ 100,000 this year. But more than 40% of the investors surveyed are confident that the rate will return to levels above $ 60,000.
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