An almost clean bullish sweep for on-chain indicators suggests that now is an ideal entry point for buyers, says data analyst firm CryptoQuant.
Bitcoin (BTC) is a firm “buy” according to a range of on-chain indicators that are flashing bullish this week.
Collected by on-chain monitoring resource CryptoQuant, a total of ten indicators are currently telling investors to enter the market now.
CryptoQuant: Bitcoin indicators “healthy”
Of the eleven items that form CryptoQuant’s market overview, eight are classified as “buy” and two as “strong buy” for Bitcoin. Only one is “neutral,” while none are “sell.”
“Long-term $BTC on-chain indicators look healthy,” CryptoQuant summarized on Twitter.
The two strongest buy signals come from the so-called stablecoin supply ratio (SSR) and exchange stablecoin reserves.
As Cointelegraph recently reported, both indicators have already given bullish hints about trader sentiment, and continue despite mixed price activity.
SSR refers to the purchasing power of stablecoin holders relative to the Bitcoin price. Even at $11,400 late last month, buyer support was strong, and conditions remain ideal at current price levels.
Bitcoin stablecoin supply ratio historical chart. Source: CryptoQuant
BTC technicals are in the green
The indicators add to the overall positive impression being given by Bitcoin’s technicals this month.
In terms of network fundamentals, hash rate and difficulty are both either at or shortly set to hit all-time highs, underscoring miners’ long-term optimism.
This week, statistician Willy Woo pointed to several other aspects showing that price action should now be upwards rather than downwards.
PlanB, the creator of the stock-to-flow Bitcoin price models, meanwhile called for BTC/USD to begin its next long-term leg up from $10,000 towards $100,000, pointing to the latest incarnation of his metric.
The only cautious words have come from those concerned about non-technical factors, such as global macro markets. Robert Kiyosaki, the author of “Rich Dad Poor Dad,” warned on Tuesday that the discovery of a successful coronavirus vaccine alone would be enough to “crash” Bitcoin and other safe havens, at least in the near term.
