Bitcoin could be nearing a major turning point after a rare combination of onchain indicators flashed signals that have historically coincided with market bottoms, 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 onchain signals have adjusted only five times during bitcoin’s 15-year history. Each previous event marked a cycle bottom, although Sullivan cautioned that this time still lacks definitive technical confirmation.
“We literally have every box checked, except for one final pattern,” Sullivan said in an interview with CoinDesk. “Either we have to break above the $82,000 pivot to confirm, or we have a final low, 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 cryptoasset is trading at $59,386 after losing 23% over the past month, extending its divergence from US stocks, which had risen to record highs before also coming under pressure this month.
