10 signals on the chain show: Bitcoin is still in a bull market

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Key on-chain signals show that despite the recent uncertainty in the cryptocurrency market, Bitcoin is still in a bull trend. In fact, a blockchain analysis company recently shared 10 signals, indicating that Bitcoin still shows a “buy” or “strong buy” state on the macro time frame.

On-chain indicators show that BTC is still in an upward trend

Due to the strong rejection of Bitcoin at the key $12,000 resistance level, some analysts have been worried that the recent price movement of BTC is not a departure from the bear market trend.

However, the key on-chain indicators clearly show that Bitcoin is still in a macro upward trend.

Blockchain data startup CryptoQuant recently shared 10 of these indicators. From a long-term perspective, Bitcoin is still “buy”. The indicators mentioned by CryptoQuant are as follows:

Mining company position index: The dollar outflow of all mining companies divided by the 365-day moving average of the dollar outflow of all mining companies.

Puell Multiple indicator: BTC’s USD daily issuance is calculated based on the 365-day moving average of the daily issuance value.

Hash rate functional area: Two moving averages of Bitcoin’s hash rate, synergistically indicated to send bullish and bearish signals.

Average value of all exchanges: the average number of BTC transferred from wallets of all exchanges.

All exchange reserves: the total balance of BTC in all exchanges.

Stablecoin Supply Ratio: The ratio of Bitcoin supply to stablecoin supply expressed in Bitcoin.

All exchange stablecoin reserves: the total balance of stablecoins in all exchanges.

MVRV ratio: The ratio between the market value and the realized ceiling.

Network value to Metcalfe ratio: The ratio between the Metcalfe value of Bitcoin and its network value.

Inventory: Bitcoin’s anti-inflation rate.

CryptoQuant said that Bitcoin’s long-term on-chain indicators look healthy.

Basic trend supports on-chain sentiment

There are basic trends that can support potential purchase signals formed by Bitcoin users through the use of leading cryptocurrencies.

The co-founder of Dan Tapiero Gold Bar International recently pointed out that Bitcoin may also gain new momentum as gold is expected to become an institutional asset class.

“Gold will become an institutional asset class. The gold chart clearly shows the situation of structured long MKT up to last year, and the key basic elements have moved. But the surprise is that the S&P 500 underperforms gold, but it does not mean it It still won’t rebound, and Bitcoin does the same.”

This is one of many basic trends mentioned by Tapiero, and is a potential driver of Bitcoin’s growth in the coming years.

Tapiero asserted that among other trends, the Fed’s expectations of inflation and the trillion-dollar monetary stimulus plan from central banks around the world are ready to push Bitcoin and gold higher.

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