Bitcoin underwent multiple rejections in the $11,000 region over recent weeks, suggesting the asset remains rangebound. Fortunately for bulls, there are on-chain trends suggesting that the cryptocurrency is in a bullish state. There are also underlying fundamentals like a commitment to inflation by the Federal Reserve that could spur further BTC purchasing.
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Bitcoin’s On-Chain Trends Suggest the Prevailing Trend Is Bullish
Bitcoin’s recent price action has been cautious at best but analysts seem convinced that the prevailing trend is bullish.
Willy Woo, an on-chain analyst, recently shared the chart below. It shows that the cryptocurrency is seeing a spike in new users (as measured by Glassnode) despite the price of BTC stalling. Woo thinks that this is an “obviously bullish” divergence that may resolve to the upside:
We’re seeing a spike in activity by new participants coming into BTC not yet reflected in price, it doesn’t happen often. This is what traders call a divergence, in this case it’s obviously bullish.
Adding to this, Woo explained that an influx of on-chain Bitcoin is currently changing hands. This should suggest that there will soon be a bullish reversal as spikes in BTC changing hands have marked trend reversals over the past few months:
“We’re seeing another impulse of coins changing hands completing. My interpretation is that the last pulse was take profit, halting the downward move; this impulse
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