3 Bitcoin On-Chain Trends Show a Macro Bull Market Is Brewing
Bitcoin has surged higher over the past 48 hours due to positive fundamental trends. The cryptocurrency, which traded as low as $10,400 just a week ago, now trades for $11,400. Less than a few hours ago, the coin was trading just shy of $11,500.
BTC’s ongoing move higher has convinced many analysts that a larger bull trend is brewing under the surface. Coin Metrics, a top blockchain analytics and data firm, made this much clear just recently.
The firm released an extensive Twitter thread noting that while there were fundamental factors that drove lower this past month, Bitcoin is strong from an on-chain perspective. They shared a handful of metrics indicating that BTC is in a very similar spot now as the coin was prior to 2017’s exponential explosion.
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Bitcoin Bull Trend Is Brewing: CoinMetrics Analysis
Coin Metrics, a top blockchain analytics firm, recently shared a swath of metrics indicating that Bitcoin remains in a long-term bull trend despite any uncertainty in the near term:
- Bitcoin MVRV, which attempts to track the profitability of the average BTC investor, is “also holding the same trajectory it did during the 2016/17 bull market.”
- The supply of BTC on exchanges is starting to decrease at a strong pace. This suggests that there are more BTC holders, which should drive prices higher over time as on-exchange demand dries up.
- ” Despite the recent volatility, the number of Bitcoin whales continues to increase, indicating the growing number of large holders that have positive expectations for the future of Bitcoin.”
1/9 Bitcoin has performed remarkably these past few weeks despite:
-Most of DeFi falling 50-80%
-CFTC charging BitMEX
-POTUS contracting Covid
-Delayed stimulus talks
-FCA announcing a derivative ban for retailWhy? Let’s see what we can find on-chain
— CoinMetrics.io (@coinmetrics) October 9, 2020
Related Reading: MicroStrategy’s Stock Continues to Soar After BTC Purchase
There’s a Lot of Room to Grow
Analysis indicates that the leading cryptocurrency has a lot of room to grow from here.
A crypto-asset chartist recently shared this chart below, which suggests that each of BTC’s macro rally highs has all formed at a Fibonacci extension ending in “0.272.” The analysis suggests that the next cryptocurrency’s high will be approximately $270,000, around 2,500% above current prices.
This optimistic analysis lines up with the sentiment shared by many other in the space. Investors like Dan Tapiero and Raoul Pal, of Gold Bullion Int. and Real VIsion, respectively, both think that the cryptocurrency will undergo an exponential rally during this market cycle.
Brave New Coin Bitcoin Liquid Index Fibonacci Extension Predicts Next Peak | Source: TradingView
Related Reading: MicroStrategy’s Stock Continues to Soar After BTC Purchase
Featured Image from Shutterstock Price tags: xbtusd, btcusd, btcusdt Charts from TradingView.com 3 Bitcoin On-Chain Trends Show a Macro Bull Market Is Brewing
OhNoCrypto
via https://www.ohnocrypto.com
Nick Chong, @KhareemSudlow
