In March, when Bitcoin (BTC) was trading at around $4,000 apiece, a prominent analyst going by Filb Filb quietly made a prediction that the cryptocurrency was going to hit $5,000, as his peers laughed. As we now know, Filb was right. And interestingly, the same indicator that he used to back his $5,000 call is flashing yet again.
The indicator: Filb explained that when Bitfinex’s BTC long-short (L/S) ratio rose above 1.5, returned to one or below, and then moved back above 1.25 over the past 12 months, Bitcoin moved by higher by approximately 25% to 50%. On the other hand, when the L/S ratio failed to break 1.25 after a move under one, BTC entered “very bearish territory,” resulting in fresh lows for crypto.