An almost clean bullish sweep for on-chain indicators suggests that now is an ideal entry point for buyers, says data analyst firm CryptoQuant.
Bitcoin (BTC) is a firm “buy” according to a range of on-chain indicators that are flashing bullish this week.
Collected by on-chain monitoring resource CryptoQuant, a total of ten indicators are currently telling investors to enter the market now.
CryptoQuant: Bitcoin indicators “healthy”
Of the eleven items that form CryptoQuant’s market overview, eight are classified as “buy” and two as “strong buy” for Bitcoin. Only one is “neutral,” while none are “sell.”
“Long-term $BTC on-chain indicators look healthy,” CryptoQuant summarized on Twitter.
The two strongest buy signals come from the so-called stablecoin supply ratio (SSR) and exchange stablecoin reserves.
As Cointelegraph recently reported, both indicators have already given bullish hints about trader sentiment, and continue despite mixed price activity.
SSR refers to the purchasing power of stablecoin holders relative to the Bitcoin price. Even at $11,400 late last month, buyer support was strong, and conditions remain ideal at current price levels.
Bitcoin stablecoin supply ratio historical chart. Source: CryptoQuant
BTC technicals are in the green
The indicators add to the overall positive impression being given by Bitcoin’s technicals this month.
In terms of network fundamentals, hash rate and difficulty are both either at or shortly set to hit all-time highs, underscoring miners’ long-term optimism.
This week, statistician Willy Woo pointed to several other aspects showing that price action should now be upwards rather than downwards.
PlanB, the creator of the stock-to-flow Bitcoin price models, meanwhile called for BTC/USD to begin its next long-term leg up from $10,000 towards $100,000, pointing to the latest incarnation of his metric.
The only cautious words have come from those concerned about non-technical factors, such as global macro markets. Robert Kiyosaki, the author of “Rich Dad Poor Dad,” warned on Tuesday that the discovery of a successful coronavirus vaccine alone would be enough to “crash” Bitcoin and other safe havens, at least in the near term.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.
Recommended Content
Editors’ Picks
Bitcoin Weekly Forecast: BTC nosedives below $95,000 as spot ETFs record highest daily outflow since launch
Bitcoin price continues to edge down, trading below $95,000 on Friday after declining more than 9% this week. Bitcoin US spot ETFs recorded the highest single-day outflow on Thursday since their launch in January.
Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers
Bitcoin (BTC) slipped under the $100,000 milestone and touched the $96,000 level briefly on Friday, a sharp decline that has also hit hard prices of other altcoins and particularly meme coins.
Solana Price Forecast: SOL’s technical outlook and on-chain metrics hint at a double-digit correction
Solana (SOL) price trades in red below $194 on Friday after declining more than 13% this week. The recent downturn has led to $38 million in total liquidations, with over $33 million coming from long positions.
SEC approves Hashdex and Franklin Templeton's combined Bitcoin and Ethereum crypto index ETFs
The SEC approved Hashdex's proposal for a crypto index ETF. The ETF currently features Bitcoin and Ethereum, with possible additions in the future. The agency also approved Franklin Templeton's amendment to its Cboe BZX for a crypto index ETF.
Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy
Bitcoin (BTC) price has surged more than 140% in 2024, reaching the $100K milestone in early December. The rally was driven by the launch of Bitcoin Spot Exchange Traded Funds (ETFs) in January and the reduced supply following the fourth halving event in April.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.