A Bitcoin indicator with a `perfect` history just told you to buy the dip

MicroStrategy may be as smart as ever “buying the dip” in Bitcoin (BTC) as an indicator with a “perfect” history tells traders to buy.

In a tweet on June 15, popular analyst Cole Garner flagged bullish signals for the Bitcoin to stablecoin ratio oscillator.

Buy the dip or mind the whale?
After MicroStrategy announced plans to raise another $1.5 billion, the proceeds of which could be used entirely to purchase Bitcoin, BTC/USD cemented support at $40,000.

The move followed praise from both Elon Musk and investor Paul Tudor Jones, the latter now advocating a 5% BTC position in comparison to the previous 1%.

Currently, the Bitcoin to stablecoin ratio oscillator predicts a classic buying opportunity, even at new local highs.

The oscillator measures the amount of Bitcoin on exchanges relative to the amount of stablecoins. According to Garner, when the ratio’s moving average enters a lower bound, shown in green on an accompanying chart, it’s time to enter BTC/USD.

Since 2019, the indicator has not failed once at catching a bullish uptrend in Bitcoin.

“A perfect BTFD hit rate since 2019, and it just printed another buy signal,” Garner commented.

Ki Young Ju, CEO of on-chain monitoring resource CryptoQuant, which produces the indicator, nonetheless sounded the alarm over a possible fresh sell-off this week. This, he said, could come from Bitfinex, where a whale has amassed a significant short position.

“If dumping happens again, it might come from Bifinex,” Ki told Twitter followers.

Source:cointelegraph.com