An influential crypto analyst has pointed out that a crucial technical indicator is now suggesting that Bitcoin (
BTC
) could potentially experience a parabolic surge.

Using the pseudonym TechDev, the analyst informed his 458,300 followers on the social media platform X that the Chaikin Money Flow (CMF) metric is indicating that Bitcoin may reach a blow-off top in this market cycle. A blow-off top is a chart pattern that typically shows a sudden price increase followed by a sharp decline.

“Bitcoin blow-off tops only occur after 4W CMF breaks this line.”

The CMF is a metric that calculates the volume-weighted average of accumulation and distribution over a specified period. TechDev’s analysis reveals that the CMF turned green three times in Bitcoin’s history – in 2011, 2013, and 2016 – before significant price surges.

Additionally, the analyst shared a chart utilizing the Bollinger Bands bandwidth (BBW), a tool that measures price volatility to predict sharp price movements based on volatility contraction. According to his chart, Bitcoin seems to be forming a pattern similar to the one seen at the beginning of 2017, which was followed by a substantial price increase.

“You’ve been in this position before. Forty-two months after a prolonged compression that has already ended. Hovering near the previous high, pushing against the upper band. The bandwidth is compressed and rebounding. Expansion has just started. The next move is set to accelerate.”

At the time of writing, Bitcoin is trading at $66,388, showing a decrease of nearly 5% in the last 24 hours.

Stay informed by subscribing to receive email alerts directly to your inbox. Follow us on X, Facebook, and Telegram for the latest price action updates. Don’t miss out on The Daily Hodl Mix.

Please note that the opinions expressed on The Daily Hodl are not investment advice. Investors should conduct their own research before engaging in high-risk investments involving Bitcoin, cryptocurrency, or digital assets. All transfers and trades are done at your own risk, and any losses incurred are solely your responsibility. The Daily Hodl does not endorse the buying or selling of any cryptocurrencies or digital assets, nor does it provide investment advice. Keep in mind that The Daily Hodl engages in affiliate marketing activities.

Featured Image: Shutterstock/CI Photos/phanurak rubpol