bitcoin could be approaching a major inflection point after a rare combination of on-chain indicators flashed signals that have historically coincided with market lows, according to Chris Sullivan, co-founder and portfolio manager at digital asset hedge fund Hyperion Decimus.
In a recent report, the hedge fund explained that four proprietary on-chain signals have aligned only five times during Bitcoin’s 15-year history. Each previous occurrence marked the bottom of the cycle, although Sullivan cautioned that this time there is still a lack of final technical confirmation.
“We literally have all the boxes checked except for one final pattern,” Sullivan said in an interview with CoinDesk. “Either we have to break through the $82,000 pivot to confirm, or we have a final bottom, call it between $54,000 and $57,000. Maybe a wick to $48,000 to capitulate. One of those two conditions we expect to happen in the next 90 days.”
If either scenario plays out, Sullivan believes bitcoin could quickly diverge from broader financial markets. The crypto asset is trading at $59,386 after losing 23% over the past month, widening its divergence from US stocks, which had risen to all-time highs before also coming under pressure this month.
