Cointelegraph Team
Cointelegraph
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
Polygon joins forces with WSPN to expand stablecoin adoption
WSPN, a stablecoin infrastructure company based in Singapore, has teamed up with Polygon Labs to make its stablecoin, WUSD, more useful in payment and decentralized finance.
Coinbase envisages listing of more meme coins amid regulatory optimism
Donald Trump's expected return to the White House creates excitement in the cryptocurrency sector, especially at Coinbase, the largest US-based crypto exchange. The platform is optimistic that the new administration will focus on regulatory clarity, which could lead to more token listings, including popular meme coins.
Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B
As Bitcoin (BTC) gets closer to the $100,000 mark for the first time — it crossed $99,000 earlier Friday — capital is rotating into alternative cryptocurrencies, creating a buzz in the broader crypto market.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: New high of $100K or correction to $78K?
Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.
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.