As Bitcoin retests the $ 50,000 price level, the indicators in the chain appear to be aligned to suggest that the coin could explode upwards soon.
Bitcoin indicators may show a calm before the storm
As mentioned in a CryptoQuant post, Bitcoin indicators seem to be showing some interesting values right now. Some of these even resemble the build-up until the late 2020 / early 2021 rally, which led to the all-time high (ATH).
Here is a brief explanation (along with the data) of the three relevant metrics the chart is talking about:
The number of transactions indicator shows the average number of transactions that take place per block on the Bitcoin network. The following diagram shows how its value has changed recently:
The BTC transactions count seems to be going up | Source: Blockchain.com
As the graph above shows, the metric’s value has skyrocketed recently. This is usually a positive sign of an uptrend.
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The second metric, Average Tokens Transferred, shows the average amount of coins transferred on the BTC chain. And the last one, transaction fees, is pretty self-explanatory. Here is a chart that explains the trends in these indicators:
The various Bitcoin chain metrics | Source: CryptoQuant
Looking at the graph, two things seem clear. The indicator of the average tokens transferred recently hit a new ATH of 31 BTC. Transaction fees seem to have come down and flattened out over the past few months.
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As the graph shows, these two trends also look similar to what they did in the run-up to the bull rally that helped BTC hit a new ATH.
If there is a pattern here, it looks like this could be the calm before the storm as Bitcoin could be making big upward moves soon. The fact that the crypto has skyrocketed and quickly broken $ 50,000 could already support this.
At the time of writing, Bitcoin is priced at around $ 50,000, up 6% over the past 7 days. The monthly profits for the cryptocurrency are around 30%.
Here is a graph showing how the value of the coin has changed over the past three months:
BTC's price gains sudden upwards trend | Source: BTCUSD on TradingView
For the past few days, it has looked like Bitcoin’s downtrend would continue for at least a while, but the price of the coin soared today as it finally tested $ 50,000 again.
It remains to be seen whether crypto can maintain momentum, but if the above indicators are true, the signs for BTC appear to be bullish over the long term.
Featured image from Unsplash.com, charts from TradingView.com, CryptoQuant.com, Blockchain.com