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.
Read ForkLog’s bitcoin news on our Telegram — cryptocurrency news, prices and analysis.