Three Indicators Are Currently Flashing Bullish for Bitcoin (BTC), ARK Invest Analyst Says

ARK analyst David Puell tells his 68,900 followers on the social media platform X that there have been “interesting market events in the last few weeks”

Bitcoin (BTC) price has been largely bullish over the last few weeks, and now an ARK Invest analyst says that three indicators are currently flashing bullish for the flagship digital asset.

The pseudonymous analyst, known as David Puell, shared his thoughts on Bitcoin with his 68,900 followers on the social media platform. He began by alluding to some interesting market events that have occurred recently.

“Interesting market events in the last few weeks. Bitcoin bounced off its 200-day moving average and its short-term holder cost basis. [On Friday], it seems to be breaking out of a broadening wedge that began to develop since last March.”

Bitcoin price is shown here bouncing off the 200-day moving average (blue line) and breaking out of a broadening wedge (dotted lines) that began forming last March. Source: David Puell/X /Chart: TradingView

According to Puell, the 200-day moving average is a crucial technical analysis indicator that defines the average price of an asset over the last 200 trading days. It is used extensively to determine the long-term trend of an asset.

Meanwhile, the short-term holder cost basis is calculated by multiplying the supply of coins that have moved in the last 155 days (young coins) by their realized price. It is used to gauge the average price at which coins that are actively being sold were last purchased.

He also highlighted the trends of the Stablecoin Supply Ratio (SSR) indicator, which measures the ratio between Bitcoin supply and the supply of stablecoins. When the SSR is low, the current stablecoin supply has a relatively larger capacity to purchase BTC.

Bitcoin price is shown here together with the Stablecoin Supply Ratio (SSR) oscillator (bottom). Lows not seen since mid-2022 are now being hit. Source: David Puell/X /Chart: TradingView

“The stablecoin supply ratio oscillator suggested Bitcoin’s oversold conditions relative to stablecoin’s purchasing power – lows not seen since mid-2022.”

Next up, the analyst discussed ARK’s own average profitability index for Bitcoin, which is calculated by multiplying the percent supply in profit by the percent network profitability. According to him, this indicator has shown the usual signs of a market uptrend.

“ARK’s own average profitability index for Bitcoin, the multiple of percent supply in profit and percent network profitability, has been always stayed within historically expected parameters for a broad bull market.”

Finally, he pointed out that the global money supply (M2) is increasing, which may be a bullish catalyst for Bitcoin.

“September saw a strong recovery in Chinese equities, one of many signs that global M2 liquidity is hitting the market. We believe Bitcoin could be benefited by this general liquidity.”

At the time of writing, the price of Bitcoin is $67,260.

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