Ten indicators suggesting that Bitcoin price is currently a “buy” from a long-term perspective
Key signals on the chain suggest that Bitcoin price is still caught up in a bull market despite recent uncertain trends in the cryptocurrency market. In fact, according to blockchain analyst firm CryptoQuant, there are ten signals that Bitcoin is clearly showing a “buy-in” or “strong-buy” time on the macro timeframe.
The consolidation of the on-chain trends shows that Bitcoin price is still in the macro trend
With Bitcoin’s strong rejection at crucial resistance of $ 12,000, some analysts have feared that Bitcoin recent price action is no different from a deviation from a downtrend. However, the leading indicators on the chain clearly show that Bitcoin is still in a macro uptrend.
CryptoQuant recently shared ten of these indicators showing that Bitcoin is currently being bought in from a long-term perspective.
The metrics mentioned by CryptoQuant are as follows:
- Miners’ Position Index – Miner’s position index: Cash flow of all mining pools in USD divided by the 365-day moving average (MA-365 days) of all mining pools in USD.
- Puell Multiple: Calculated by dividing the daily Bitcoin issue value in USD by the 365-day MA of the daily issue value.
- Hash Ribbons: A custom indicator used to track the intersection between two moving averages of the hashrate.
- All Exchanges Outflow Mean – Average of all exchanges: Average amount of BTC transferred from wallets of all exchanges.
- All Exchanges Reserve – Reserve of all exchanges: The aggregate balance of BTC on all exchanges.
- Stablecoin Supply Ratio – Stablecoin Supply Ratio: The ratio between the Bitcoin supply and the supply of stablecoins, denoted in BTC.
- All Exchanges Stablecoin Reserve – All Exchanges Stablecoin Reserve: The aggregate balance of stablecoins across all exchanges.
- MVRV Ratio – MVRV Ratio: The ratio between the market cap and the actual capitalization.
- Network Value to Metcalfe Ratio – The ratio of the network value on Metcalfe: The ratio between Bitcoin’s Metcalfe value and its network value.
- Stock to Flow: Bitcoin’s inverse inflation rate.
Pioneers of On-chain Indicators
– Puell Multiple: @kenoshaking
– Hash Ribbons: @caprioleio
– Stablecoin Supply Ratio: @n3ocortex
– MVRV Ratio: @MustStopMurad
– Stock To Flow: @100trillionUSD
– Miners’ Position Index: @cryptoquant_com
— CryptoQuant (@cryptoquant_com) September 16, 2020
Fundamental trends favor on-chain upside momentum
There are fundamental tendencies to back up the fundamental signals Bitcoin users are forming through their top use of cryptocurrencies.
Dan Tapiero, the co-founder of Gold Bullion Int., Recently noted that with Gold on its way to becoming an institutional asset, Bitcoin could also gain an advantage:
Finally:#Gold to become an institutional asset class.
Key fundamentals set into motion.
Surprised how much #spx
to underperform gold but doesn’t mean it still won’t rally.
— Dan Tapiero (@DTAPCAP) September 16, 2020
This is one of the many fundamental trends that Tapiero has mentioned as a potential driver for Bitcoin’s growth in the coming years.
Among other trends, Tapiero has asserted that the Federal Reserve’s commitment to fighting inflation and the trillions of dollars in monetary stimulus from the world central banks drive Bitcoin and Gold soaring.
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