The co-founder and CEO of crypto hedge fund Three Arrows Capital, Su Zhu, says that a very rare bullish signal was flashed by Bitcoin.
Zhu informed his Twitter followers that Bitcoin’s dormancy flow metric has reached a level that has only been seen five times in the complete history of Bitcoin.
Dormancy flow means, the average number of days for which spent coin has remained inactive, before being moved again. The metric helps in assessing the bull market under normal circumstances, and to time market lows.
Zhu also mentioned another on-chain metric for Bitcoin, illiquid supply. These are coins that are present in a wallet and have a very little trading history. When there is an increase in the supply of illiquid, the absence of sell pressure on BTC is indicated, leading to rallies in prices of BTC.
Zhu has indicated that the current phase of Bitcoin is the accumulation period, with an overall bullish market structure.
Disclaimer: The article is meant for the educational purpose only and in no way it should be considered as financial advice. Own research on the topic is advisable.
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