Bitcoin: Bullish on-chain momentum again, traders could push prices higher
While some analysts are still expecting a further decline in Bitcoin (BTC), fundamentals and on-chain metrics show that the bulls have the upper hand.
Bitcoin prepares for halving
Adaptive Capital partner Willy Woo recently noted that after several months of downturn, the on-chain dynamic signal “penetrates into bullish” areas. Woo has long claimed that the signal is correlated with bitcoin's macroprice trends.
Woo did not mention the name of the indicator he was using or the details of the indicator because they were “proprietary” to his fund. However, the on-chain analyst says investor momentum is starting to pick up.
So be the “bottom most likely” – meaning any movement that is below the value of 6. 500 $ falls, “in the macro view will only be a wick”. According to Woo, the unnamed indicator also means that crypto investors are tackling the upcoming “halving,” the block reward reduction that will take place in May 2020.
Woo is not the only one who realizes that Bitcoin's on-chain metrics are starting to favor bulls.
Philip Swift, founder of the Look Into Bitcoin cryptanalysis site, has recently -sided thread published. In it he states that Bitcoin's price bias remains positive due to several factors.
One of these factors: the Bitcoin Network Momentum Tracker, which tracks the movement of coins to determine how the network is being used. The trend has turned upside down rebounds from the bear market levels. This is something that is often observed six to ten weeks before the start of a bull market, Swift noted.
Crypto-centric on-chain analysis firm Glassnode has also recently discovered that the metrics indicate that Bitcoin has bottomed out and will rise higher in a “strong” way.
One of Glassnode's metrics is “Market Value to Realized Value” (MVRV), which is the ratio between market capitalization and realized capitalization, “consolidated into one”. Background: A value of one for the ratio often marks a low point for the cryptocurrency market.
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Last update: Sunday, December 8 728