Bitcoin's Rare Bottom Signal Sets Up on August 31

A rare Bitcoin bottom signal is setting up on August 31, according to analyst Oliver Velez. This signal has only appeared three times in 15 years and each time it landed on a major Bitcoin bottom.

The signal works by measuring the S&P 500 (NYSE:SPY) in Bitcoin. When this chart rises, it means Bitcoin is losing ground to stocks. But when it falls, it signals that Bitcoin is gaining against them.

A specific setup has been identified as a key indicator of a bottom. It involves three consecutive rising bars on a four-month chart, each one higher than the last. This pattern has only appeared three times in 15 years and every time it completed, Bitcoin was at or near a major cycle low.

The signal is currently forming its fourth sequence, with the first bar closing in December, the second in April, and the third live right now. The bar will close on August 31, adding a fourth entry to the list of past instances.