Bitcoin's BTC/USD on-chain data is showing key support levels that suggest a potential turning point for the cryptocurrency, indicating a positive outlook for the long-term trajectory of its price.
What Happened: According to data from CryptoQuant, several on-chain metrics have hit critical support points, historically marking the end of bear markets and the beginning of new bull runs.
One of the most significant metrics is the 7-day Simple Moving Average (SMA) of the Fund Flow Ratio, which has rebounded after touching 0.05.
Historically, this level has served as a crucial support line, where fund flow stops declining and begins to recover.
The current rebound suggests that investors are returning to exchanges, a sign that often signals the conclusion of bear markets or halving events and ushers in long-term bullish momentum for Bitcoin.
Past rebounds from this level have led to substantial price increases.
Additionally, the 30-day SMA of the Estimated Leverage Ratio has also reached a key support range between 0.15 and 0.175, with signs of recovery.
This metric, which tracks the amount of leverage in Bitcoin trading, gained importance following the approval of Bitcoin futures ETFs after 2021 and continues to play a crucial role in analyzing market sentiment.
Recent positive news around Bitcoin options trading further strengthens the bullish implications of this support level.
The 30-day Exponential Moving Average (EMA) of Binary Coin Days Destroyed (CDD) has also been moving between 0.1 and 0.3, suggesting that long-term Bitcoin holders are accumulating more of the asset.
Historically, when Binary CDD spikes significantly, it signals the end of a bull market.
The current accumulation phase indicates that long-term investors remain confident, viewing the present levels as an opportunity to acquire Bitcoin before the next potential price rally.
The confluence of these on-chain metrics reaching key support levels presents a positive long-term outlook for Bitcoin.
These signals suggest that the cryptocurrency may be entering a phase of sustained growth, as has been the case in past cycles following similar data patterns.
This bullish sentiment around Bitcoin will be a focal point at Benzinga's Future of Digital Assets event on Nov. 19, where leading figures from the cryptocurrency and blockchain industries will explore the future of digital assets and decentralized finance.
Read Next:
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
