As a seasoned crypto investor with a decade of experience under my belt, I find the recent analysis by Darkfost at CryptoQuant particularly intriguing. Having weathered multiple bull and bear markets, I’ve learned to read between the lines of on-chain metrics and market sentiment.
Recent data from CryptoQuant has revealed that Bitcoin may be on the cusp of a significant recovery, supported by key on-chain metrics.
According to an analyst known as Darkfost on CryptoQuant, some key indicators are approaching critical points where they might stabilize, hinting at a possible prolonged bullish trend for Bitcoin. These signs imply that the Bitcoin price could see significant upward movement once investor sentiment becomes increasingly positive.
Key On-Chain Metrics Pointing To Recovery
As a researcher, I’m focusing on a crucial indicator – the 7-day Simple Moving Average (SMA) of the Fund Flow Ratio. At present, it stands at 0.05, a level that historically has served as a significant line of support. When this metric reaches this point, it often signifies the conclusion of a bear market or heralds the commencement of a new bullish trend.
Based on information from Darkfost, it appears that the Fund Flow Ratio has slightly increased, indicating an uptick in investor activity on cryptocurrency exchanges. This could be a promising signal for the potential upward trend of Bitcoin’s price in the future.
Besides the Fund Flow Ratio, the 30-day Simple Moving Average (SMA) of the Estimated Leverage Ratio also serves as an important indicator hinting at recovery. This leverage ratio, which has established a support level between 0.15 and 0.175, is currently on an uptrend.
This tool tracks the level of borrowing in Bitcoin transactions, and an increase typically signals heightened market trust. Darkfost noted that the launch of futures ETFs and advancements in Bitcoin options trading could amplify the significance of this statistic, referring to its growing impact.
A key point emphasized by Darkfost is the 30-day Exponential Moving Average (EMA) of Binary Coin Days Destroyed (CDD). This analytical tool monitors long-term Bitcoin holders’ activity, and a sudden increase in this EMA often suggests the possible conclusion of a bull market, as suggested by CryptoQuant analysts.
The value of this metric often falls between 0.1 and 0.3, signifying that long-term Bitcoin holders are amassing more Bitcoin. This pattern implies that experienced investors are strategically preparing for possible future profits, a move that could potentially escalate Bitcoin’s price in the near future.
Bitcoin Positive Long-Term Outlook
The analysis concludes with a focus on the long-term outlook for Bitcoin. The CryptoQuant analyst believes that the recent movements in on-chain metrics are a positive signal for Bitcoin’s long-term growth. His conclusion read:
From a long-term outlook, I find it more beneficial to analyze chain data over an extended period. The current support levels and recent trends appear quite promising when viewed through the lens of long-term optimism.
According to the findings in the report, the ratios such as Fund Flow Ratio, Leverage Ratio, and Binary CDD suggest that we may be approaching the end of the bear market. There seems to be a growing strength indicating an upcoming bull run, but it’s important to note that when and how much prices might rise are still unclear.
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2024-09-24 08:10