Bitcoin could be approaching a major turning point after a rare combination of on-chain indicators issued signals that have historically coincided with market lows, according to Chris Sullivan, co-founder and portfolio manager of digital asset hedge fund Hyperion Decimus.
In a recent report, the hedge fund explained that four proprietary onchain signals have only aligned five times in bitcoin’s 15-year history. Each previous event marked a cycle low, although Sullivan cautioned that this time around, final technical confirmation was still lacking.
“We literally checked all the boxes except for one final model,” Sullivan said in an interview with CoinDesk. “Either we need to get past the $82,000 pivot to confirm, or we have a final low, call it between $54,000 and $57,000. Perhaps a wick to $48,000 to capitulate. One of these two conditions should occur in the next 90 days.”
If either scenario plays out, Sullivan believes Bitcoin could quickly drift apart from broader financial markets. The crypto asset is trading at $59,386 after losing 23% over the past month, extending its divergence from US stocks, which had reached record highs before also coming under pressure this month.
