Bitcoin Bears Beware – Yet Another Key Metric is Flashing a BTC Buy Signal

cryptonews.com:

Another key metric is flashing a Bitcoin buy signal. That’s according to a tweet by popular crypto analyst/influencer Mohit Sorout. According to Sorout, the so-called DCA Indicator, which he called “the mother of all BTC bullish signals” has flashed for only the fourth time ever.

DCA stands for dollar cost average, a technique used by cryptocurrency investors where they buy a set amount each day in order to secure a favorable average price. Expanding further on the exact parameters of his indicator, Sorout explains that the “daily DCA indicator tracks the profit/loss of buyers who hypothetically bought a fixed $ amount worth bitcoin daily for the past year (365 days)”.

The bullish sign from the DCA indicator is another sign that Bitcoin’s price rally since the start of the year has propelled the market back into profitability. That’s important because analysts view a return to Bitcoin market profitability following a prolonged bear market and period where much of the market was at a paper loss as a lead indicator of an incoming bull market.

The signal from the DCA Indicator chimes well with two widely followed indicators tracked by crypto analytics firm Glassnode. The 30-Day Simple Moving Average (SMA) of the Bitcoin Realized Profit-Loss Ratio (RPLR) indicator moved above one for the first time last April at the beginning of the month. That means that the Bitcoin market is realizing a greater proportion of profits (denominated in USD) than losses on BTC sales (or, when each BTC moves).

According to Glassnode, “this generally signifies that sellers with unrealized losses have been exhausted, and a healthier inflow of demand exists to absorb profit taking”. Hence, this indicator is sending a bullish sign. Historically, the