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The Bitcoin dollar cost average (DCA) indicator is firmly in “raging” bull market territory, while analysts consider whether its signals are too good to be true.
For the fourth time this week, a indicator for Bitcoin price $23,804 has flashed green, sending a strong warning to bearish.
DCA breakout last preceded 640% BTC price upside
The DCA indicator, the most recent Bitcoin statistic to turn bullish over lengthy timescales, is even attracting the attention of significant Bitcoin investing groups.
Sorout has only recorded three purchase signals throughout the history of Bitcoin, and each one prevented a significant rise in the price of BTC.
DCA is an investment method in which a buyer allocates a fixed sum of money to acquire exposure to an asset at certain intervals. This may be done by investing $10 per week in Bitcoin, which is frequently recommended as the best method to expose volatile cryptocurrencies.
The DCA Indicator measures the relative profitability of a hypothetical DCA strategy involving $1 buys per day for a year.
According to Sorout, big bull markets have traditionally started once they enter the profitable zone, marked as 365 on its scale. One apparent exception occurred in the middle of 2022 when a setback followed a gain over the 365 level, and BTC/USD began its descent to multi-year lows close to $15,600.
Others were, however, prepared to give the most recent breakout the benefit of the doubt in a climate of growing confidence in Bitcoin’s 2023 recovery holding.
Bitcoin price death crosses and a “failed breakout”
But, depending on the timeframe, its Bitcoin bull run indications do not yet clearly point to the moon.
Bitcoin’s most recent ascent to six-month highs is a “failed breakout,” according to Caleb Franzen, a senior market analyst at Cubic Analytics who first identified the breakout.
The biggest cryptocurrency also has to overcome a significant obstacle in the form of several moving averages (MAs) overhead that will operate as resistance for the most of 2022.
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