BTC Will Remain In The Bull Market, On-Chain Data Shows
On Oct 19, 2020
According to the crypto-asset analyst, four crucial on-chain trends show that bitcoin (BTC) will remain in the bull market. Last week, the news that OKEx stopped withdrawals rocked the cryptocurrency market. Immediately after the announcement, the Bitcoin price drooped. At the time of writing, Bitcoin stands at $11,799 and has increased by 3.22% in the last 24 hours. The market capitalization has increased from $208 billion to $218 billion. Despite the short-term weakness, the leading cryptocurrency is showing signs that it is preparing to gain value in the long term. There is a confluence of on-chain trends that show Bitcoin is bullish, one cryptocurrency analyst stated.
Bitcoin’s On-Chain Trends Are Bullish, According To The Data
As we mentioned, a crypto asset analyst said, based on data from blockchain analytics firm CryptoQuant, Bitcoin is in the macro bull trend. Here are four of the in-chain trends that show why bitcoin will remain in the bull market.
- “Exchange whale ratio” is currently low. The “exchange whale ratio” tracks how much BTC major holders have deposited on exchanges. This metric is the lowest since 2018 lows. What this means is that there is minimal selling pressure from large bitcoin holders.
- The amount of BTC which miners send to exchanges is currently at its lowest point since March 2017. So, this metric shows that the miners who think that Bitcoin will value and therefore do not hedging their assets by selling coins.
- At the same time, miner reserves are falling rapidly. This info shows that a small number of BTC is available for sale. Bitcoin miners may be making over-the-counter deals, backed by numerous high-profile Bitcoin accumulation announcements.
- Additionally, the market cap of stablecoins has also increased in recent months. This trend shows that there is money on the sidelines to buy Bitcoin and other crypto-assets.
Bitcoin’s Fundamentals Currently Hold Strong
Analyst Josh Rager stated in his latest Bitcoin price analysis that he found the $ 11,930 level for leading cryptocurrency as strong resistance. In his opinion, if BTC manages to close above the $ 11,900 level on the weekly chart, the price could rise to $ 13,000. The most important support level is still $ 11,200.