On-Chain Update: Bullish Indicators Despite Price Dips

On-Chain Update: Bullish Indicators Despite Price Dips
фото показано с : bitcoinmagazine.com

2021-3-9 18:14

Despite the recent bitcoin sell off, there are several very bullish on-chain indicators showing HODLers are accumulating through this dip.

At the time of this writing, bitcoin’s price is in the midst of a consolidation that has lasted almost two weeks, currently sitting at $47,200.

One of the most important data points that can be used to generally call bottoms of corrections is the spent output profit ratio (SOPR) metric. This measures profit-taking, with 1.00 essentially marking the break-even point. In bitcoin bull markets, SOPR rarely dips below 1.00 and if it does, this can indicate a very attractive opportunity for buyers. Most recently, SOPR bottomed out above 1.00. This indicates that recent buyers aren’t panic selling and are viewing this consolidation as just another higher low in the parabolic price run that bitcoin has been on; a very bullish indication.

This same concept can be illustrated by looking at the number of accumulation addresses on-chain. Despite the recent price decrease, there has been a massive run-up in new accumulation addresses.

Another bullish indication of accumulation: There has been a massive increase in illiquid supply. This indicates HODLers have been adding to their positions despite the recent sell-off.

Similarly, this can be illustrated by looking at liquid supply as well. Looking at the chart below, you can clearly see a massive decline in liquid supply:

Other Interesting Data Points

One of the most intriguing on-chain metrics that I have an eye on measures the net position of Bitcoin miners. For the first time in months, we have begun to see miners net-long bitcoin, indicating that they are no longer selling, but rather accumulating. Even the Marathon CEO stated in a recent tweet: “Marathon has held Bitcoin we mine and will continue to do so, barring any unforeseen consequences. We also purchased $150m of Bitcoin on 1/25/2021 that is now worth $277m.” On-chain data suggests that it is far from the only mining operation that is thinking this way.

A final interesting chart to look at is from the Grayscale Bitcoin Trust Premium. For the first time throughout this entire bull run, the premium has dipped negative, now -11.92 percent, compared to spot bitcoin. Why has the premium turned negative? It’s impossible to say for sure, but it may have something to do with the availability or exchange-traded funds (ETFs) such as Canada’s Purpose Bitcoin ETF. This ETF now holds over 10,000 BTC.

In addition, this could possibly suggest institutional buyers/high-net-worth individuals are understanding the importance of taking possession of their own private keys.

This is a guest post by William Clemente III. Opinions expressed are entirely their own and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.

Similar to Notcoin - Blum - Airdrops In 2024

origin »

Etherisc DIP Token (DIP) на Currencies.ru

$ 0 (+0.00%)
Объем 24H $0
Изменеия 24h: 0.00 %, 7d: 0.00 %
Cегодня L: $0 - H: $0.0251189
Капитализация $0 Rank 99999
Цена в час новости $ 0.0831496 (-100%)

on-chain despite indicators bullish several very showing

on-chain despite → Результатов: 83


This On-Chain Trend Suggests Bulls are About to Regain Control Over Bitcoin

Bulls have been struggling to gain decisive control of Bitcoin throughout the past few days and weeks This has resulted in it being quite heavy, with each rally being aggressively sold into as bears aim to push it back down to $30,000 Despite this, the crypto has been able to hold strong within the lower-$30,000 region, and every dip below $30k has been met with massive buy-side support There’s a possibility that this support is […]

2021-2-2 21:00


Фото:

Эксперты Glassnode выявили признаки завершения коррекции биткоина

Аналитики Glassnode на основе двух ончейн-метрик спрогнозировали завершение коррекции и формирование нового восходящего импульса цены биткоина. Despite briefly dropping below $30k over the past week, on-chain fundamentals for $BTC remain strong, indicating room for further growth.

2021-1-26 15:52


Фото:

Miners’ Influence Over Bitcoin Price Drops Alarmingly – What’s Next?

The price point of Bitcoin is influenced by different fundamental factors and miners’ effect on the price of Bitcoin has begun to slowly diminish, according to new research. Coinmetrics, the on-chain analytics website behind the research observed that despite miners accumulating additional thousands in their annual Bitcoin earnings, their level of control and influence on […]

2020-11-7 20:44


Here’s the Reason Why Bitcoin’s Price is Stable Despite Macro Turbulence

Bitcoin’s price has been incredibly stable throughout the past couple of weeks Even bearish news developments that would have – in years past – catalyzed far-reaching selloffs have done little to shake its present strength Analysts are now widely noting that the traditional markets will be a guiding force for BTC going forward Which direction they begin trending mid-term will likely influence the benchmark crypto One on-chain analyst is now putting forth an interesting observation […]

2020-10-8 21:00


Ethereum Classic Price Analysis - On-chain activity drops despite recent protocol upgrade

Ethereum Classic (ETC) is a distributed ledger and decentralized computing platform with smart contract capabilities, created in 2016 by forking the original Ethereum (ETH) project. The crypto asset is currently 21st on the Brave New Coin market cap table, with a market cap of US$765 million and US$110 million in trade volume over the past 24 hours.

2020-6-23 15:01


Bitcoin’s On-Chain Indicators Flash Buy Despite Price Stagnation

Despite Bitcoin’s current price stagnation, on-chain indicators favor the bulls, with most holders remaining unphased by market volatility. Bitcoin’s Ambiguous Technical Indicators The technical outlook for the flagship cryptocurrency remains... The post Bitcoin’s On-Chain Indicators Flash Buy Despite Price Stagnation appeared first on Crypto Briefing.

2020-6-20 21:57