Betting against the Bitcoin tide? Consider these on-chain metrics first
After hitting the year’s lowest of $17,774 in mid-June, Bitcoin has gained a steady upward trajectory for the last two months.
It also managed to cross the $24,000 mark recently. This indicated that the selling pressure on the king coin took a back seat.
However, a trend reversal happened on 18 August, which drastically decreased Bitcoin’s price to nearly $21,000, creating a panic situation in the crypto community once again. Nonetheless, several metrics appeared in the bull’s favor.
For instance, Bitcoin’s balance on exchanges reached a four-year low of 2,342,202.837 BTC. Thus, hinting at a bullish market environment.
So you might ask- With this new development, is there a possibility of the next bull rally?
After registering a rise in mid-July, BTC’s balance on exchanges gained southbound momentum and reached its four-year low despite the recent price movements.
Source: Glassnode
Besides, the 24-hour BTC price chart also supported the bulls as it went green.
At the time of writing, Bitcoin was trading at $21,343.01 with a market capitalization of $408,324,544,759.
A slight recovery was seen as BTC showed a positive 1.15% performance growth over the last day.
Source: CoinMarketCap
Additionally, Bitcoin’s number of addresses with non-zero balances also increased from 42,643,752 to 42,699,265 on 22 August. This suggested that investors’ confidence in BTC hasn’t suffered despite its price volatility.
Source: Glassnode
On the other hand, the MVRV ratio plunged simultaneously with the price and hit the month’s lowest of 0.9617, after which it bounced upward.
Now, at the time of writing, the MVRV ratio was below the one mark.
Source: Glassnode
Looking at BTC’s 4-hour chart pointed out certain cues for long-term traders.
A bullish
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