Bitcoin price climbs above $44,000

On Wednesday, January 12, bitcoin prices rose above the $44,000 mark (on Bitstamp).

The market capitalization of digital gold surpassed $830 billion, according to CoinGecko.

Three Arrows Capital founder Su Zhu attributed the rebound to a rare buy signal from the bitcoin indicator Dormancy Flow.

Dormancy flow buy signal on $BTC, very rare, only six times in history pic.twitter.com/eNU5lY9sOH

— Zhu Su 🔺 (@zhusu) January 11, 2022

According to him, Dormancy Flow has fired only six times in its history. The indicator shows a prolonged period during which \”sleeping bitcoins\” do not affect the asset’s price.

According to Su Zhu’s chart, in previous instances Dormancy Flow did indeed signal a buy for bitcoin. The last time the indicator fired was in mid-2021, when the price of bitcoin fell below $30,000.

In the last 24 hours, all top-10 assets by market capitalization were in the green. The biggest gainers were Polkadot (+12.2%), Terra (+11.5%), and Cardano (+11%).

Earlier, DoubleLine Capital founder Jeffrey Gundlach described bitcoin as too expensive in light of the Federal Reserve’s impending monetary-policy tightening, and for buying it proposed waiting for the price to fall to $25,000.

Earlier, on January 10, bitcoin fell below $40,000.

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