• Bitcoin’s price held steady above $28,000 despite the US Federal Reserve policy meeting on Wednesday.
• A suite of on-chain and technical metrics are signaling a bullish outlook for the cryptocurrency market.
• The “Recovering from a Bitcoin Bear” dashboard tracks 8 indicators to determine when Bitcoin is transitioning back into a bull market.
Widely Followed Suite of Bitcoin On-chain Metrics Flash Bullish
The world’s largest cryptocurrency, Bitcoin (BTC/USD), is currently trading close to nine-month highs just above $28,000 as markets digest Wednesday’s US Federal Reserve policy meeting. Despite an initial ‘sell the fact’ reaction on Wednesday, Bitcoin was able to regain its poise and recover back above $28,000 on Thursday as narratives around it being a safe haven against fragility in the US banking system enticed bulls to buy the dip.
Bullish Signs for BTC Price
A widely followed suite of on-chain and technical metrics are sending bullish signs for the Bitcoin price. Crypto data analytics firm Glassnode’s “Recovering from a Bitcoin Bear” dashboard currently shows seven out of eight indicators flashing long-term bullish signals for BTC/USD pair. This suite of metrics has historically been quite effective at predicting when Bitcoin is transitioning back into a bull market from bearishness.
Indicators Above Key Pricing Models
Signals 1 and 2: Bitcoin is comfortably above its 200DMA and Realized Price levels – key pricing models which indicate that near-term price momentum is shifting in a positive direction. A break above these levels or defense of them (as seen earlier this month) indicates that the bull market remains in play.
New Address Momentum
The 30-Day SMA of new Bitcoin address creation has moved above its 365-Day SMA in recent months, suggesting an increase in usage momentum among new users who have created wallets with the cryptocurrency.
Balance Favors Long-Term HODLers
The balance of USD denominated wealth favors long term HODLers; indicating that investors who bought earlier during this cycle are continuing to hold onto their positions despite prices reaching all time highs over recent weeks and months.. Market profitability has also returned which suggests that miners are once again likely making profits as fees increase due to higher demand for transactions on the network with block sizes reaching full capacity in some cases recently..