Based on this indicator, an analyst explained that the Bitcoin rally still has room to grow before it reaches a peak.
Bitcoin Macro Oscillator Isn’t At Historical Top Zone Yet
The new post Willy Woo discussed on X the latest trend that has developed in the Bitcoin Macro Oscillator. This indicator is a combination of four different metrics that provide an oscillating price around the zero-mark.
Indicators in question include the Volume Weighted Average Prices (VWAP), the Cumulative Days of Destroyed Values (CVDD), as well as Sharpe.
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Below is a chart that shows the fluctuation in the value of an oscillator using these metrics over the course of recent Bitcoin cycles.
On the graph it is clear that the past tops for the crypto’s value have always coincided when the metric reached relatively high values. The indicator broke the 1.8 threshold in 2013 and 2021, while its 2017 top occurred at 2.4.
The oscillator’s peak has been reached in this current rally. It is a value of 1. The asset’s highest price (ATH), which is still the peak of this rally, coincided with that high.
This value is not high enough to qualify as a cyclical top when compared to historical precedent. In the past few years, as coin prices have increased consolidated The oscillator, which was at a high of 0.79, has now dropped to just 0.69.
In other words, it has moved further from where previous tops occurred. “This 2.5 months of consolidation under bullish demand has been very good for Bitcoin; it means the price has more room to run before topping out,” Notes Woo. According to the analyst, BTC has 2 to 3 more levels to go before it reaches the macro-top.
Woo also noted a possible positive sign for Bitcoin in regards to its net capital flows. This chart shows the trend of this metric over the past few years.
![Bitcoin Network Flows](https://fxruhanahmed.com/2/wp-content/uploads/2024/05/1717020213_102_How-High-Can-Bitcoin-Go-Before-A-Top-Analyst-Chimes.jpeg)
According to the graph below, Bitcoin’s net capital flows were high as the asset rose towards its ATH price, but the money flowed out when it began moving sideways.
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In May, however, they finally reverted the trend as the flows were on the increase once again. It is not surprising that this renewed demand will boost the value of cryptocurrency.
BTC price
Bitcoin rose above $70.500 during the previous week, but it has fallen since then, now trading around $68,800.
Featured images from Dall E. Woocharts.com. TradingView.com.
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Source: www.newsbtc.com