As Bitcoin retests the $50k price level, on-chain indicators seem to be aligned so that they suggest the coin might explode upwards soon.
Bitcoin Indicators May Be Showing A Calm Before The Storm
As pointed out by a CryptoQuant post, Bitcoin indicators seem to be showing some interesting values right now. Some of these even look similar to the build up to the late 2020/early 2021 rally that lead to the all-time-high (ATH).
Here is a quick explanation (along with the data) of the three relevant metrics the chart talks about:
The transactions count indicator shows the average number of transactions happening per block on the Bitcoin network. The below chart showcases how its value has changed recently:
The BTC transactions count seems to be going up | Source: Blockchain.com
As the above graph shows, the value of the metric has shot up recently. This is usually a positive sign for an upside.
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The second metric, the mean tokens transferred, shows the average amount of coins transferred on the BTC chain. And the last one, the transaction fees, is pretty self-explanatory. Here is a chart explaining the trends in these indicators:
The various Bitcoin chain metrics | Source: CryptoQuant
Looking at the graph, two things appear clear. The mean tokens transferred indicator hit a new ATH of 31 BTC recently. While the transaction fees seems to have gone down and flattened in the past couple of months.
Also, as the chart shows, these two trends look similar to how they did during the lead up to the bull rally that helped BTC make a new ATH.
If there is any pattern here, it looks like this might be the calm before the storm as Bitcoin could make large moves upwards soon. The fact that the crypto has shot up and broken $50k quickly might already support this.
At the time of writing, Bitcoin’s price is around $50k, up 6% in the last 7 days. Monthly gains for the cryptocurrency are around 30%.
Here is a chart that shows how the value of the coin has changed over the last three months:
BTC's price gains sudden upwards trend | Source: BTCUSD on TradingView
Over the past few days, it looked as though Bitcoin’s downtrend would continue for a while at least, but today the coin’s price sharply spiked up as it finally retested $50k again.
It remains to be seen if the crypto can keep the momentum up, but if the above indicators are anything to go by, signs seem to be bullish for BTC in the long term.
Featured image from Unsplash.com, charts from TradingView.com, CryptoQuant.com, Blockchain.com