Su Zhu, co-founder and CEO of crypto hedge fund Three Arrows Capital, said that Bitcoin (BTC) is giving a rare bullish signal.
Zhu points out that Bitcoin’s dormancy flow metric has reached a level seen five times before in history.
This metric refers to the average number of days each spent coin was inactive before being moved. The metric can be used to time market dips and assess whether the bull market remains relatively normal. Another on-chain Bitcoin metric that Zhu finds notable is its illiquid supply. The illiquid supply refers to BTC in wallets with little sales history. When illiquid supply increases, it indicates that there is no selling pressure on BTC, increasing the chances of a rally.
According to Zhu, Bitcoin is in a long accumulation period with an overall bullish market structure.
At the time of writing, Bitcoin was trading at $42,800, up 2% on the day. However, the coin is still around 40% behind this level, looking at its all-time high of $69,000 in November 2021.