Su Zhu, co-founder and CEO of the crypto hedge fund Three Arrows Capital, said Bitcoin had just triggered a rare upward signal.

According to Zhu, Bitcoin’s inactive traffic metric has just reached a level only five times in history.

“Buy the signal from BTC hibernation, very rarely, only six times in history.”

The source: Twitter

The BTC dormant state refers to the average number of days each issued coin is dormant before moving. This metric can be used to identify lows and gauge whether the bull market will continue under relatively normal conditions.

Another on-chain metric for Bitcoin that Zhu finds remarkable is the illiquid supply. Low supply of liquidity refers to BTC in wallets with a low sales history. If the illiquid supply increases, this does not indicate any selling pressure on BTC and increases the chances of a rebound.

“Since July 2021, the liquidity supply has increased sharply in line with the cumulative trend from January 2019 to April 2021.”

The source: Twitter

According to Zhu, Bitcoin is in a long accumulation phase with an overall bullish market structure.

“Bitcoin is in a multi-year process of higher ups and downs, with 2021 being a relatively quieter year amid sideways accumulation. Buying highs or selling lows can be quite risky at this stage, resulting in significant underperformance of the Buy and Hodl activity.

At the time of writing, Bitcoin is trading at $ 42,499, up 1% from the day but still nearly 40% less than its all-time high of $ 69,000 in November 2021.

Source: TradingView

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