Bitcoin Bulls Roar: Metrics Flash Bullish as BTC Price Holds Above $28,000
• The widely followed suite of on-chain and technical metrics is signaling bullish signs for the Bitcoin price, with BTC/USD holding close to nine-month highs.
• Bitcoin was able to regain its poise and recover back above $28,000 as narratives around being a safe haven against fragility in the US banking system enticed bulls.
• Eight indicators tracked in crypto data analytics firm Glassnode’s “Recovering from a Bitcoin Bear” dashboard are currently signaling that Bitcoin is in the early stages of a new bull market.
Widely Followed Suite of On-chain Metrics Flash Bullish
A widely followed suite of on-chain and technical metrics are sending bullish signs for the Bitcoin price, with BTC/USD holding close to nine-month highs just above $28,000 as markets digest Wednesday’s US Federal Reserve policy meeting.
Bitcoin Price Regains Poise Above $28K
Despite initially selling off on Wednesday in reaction to the US central bank lifting interest rates by 25 bps as expected, Bitcoin was able to regain its poise and recover back above $28,000. This was due to narratives around Bitcoin being a safe haven against fragility in the US (and global) banking system and around the Fed’s dovish pivot enticing bulls to buy the dip.
“Recovering from a Bitcoin Bear” Dashboard
A suite of eight indicators tracked in crypto data analytics firm Glassnode’s “Recovering from a Bitcoin Bear” dashboard are currently signaling that Bitcoin is in the early stages of a new bull market. These indicators assess whether or not network utilization momentum is increasing, whether market profitability is returning and whether USD-denominated bitcoin wealth favors long term HODLers. When all eight are flashing green it is seen as a strong bullish sign for the bitcoin market.
“Signals 1 & 2: Above 200DMA & Realized Price”
The two most important signals tracked by this dashboard indicate that bitcoin is trading comfortably above both its 200 day moving average (200DMA) and realized price – an indicator that near term price momentum may be shifting positively. Equally, when bitcoin defends these levels upon retesting them earlier this month it has been seen as key technical validation that this bull run remains intact.
“Signal 3: New Address Momentum”
The third signal – 30 day SMA of new address creation surpassing its 365 day SMA – indicates that rate at which new wallets are being created is accelerating significantly over time; another positive sign signalling further upside potential for bitcoin prices going forward.