Bitcoin's dormancy flow indicator is flashing values typically seen in the late stages of a macro bearish trend. Reports godbole17
Bitcoin's entity-adjusted dormancy flow
The entity-adjusted dormancy flow, a ratio of cryptocurrency's going market value to the annualized dollar value of coin dormancy, has dropped below $250,000. Dormancy refers to the average number of days each coin transacted remained dormant or unmoved – a gauge of market's spending pattern. "Entity-adjusted dormancy flow recently bottomed out, showing a full reset of the metric. These events historically print at the cyclical bottom,""Low dormancy flow values indicate moments where market cap is undervalued relative to the yearly sum of realized dormancy, indicating moments where bitcoin is a value price," Glassnode added.
Bitcoin bottomed out in July 2021 and began a new bull run with the metric falling into the green zone. The cryptocurrency hit record highs near $69,000 on Nov. 10.