Bitcoin’s price is showing upward momentum with key on-chain metrics indicating potential long-term support. Analyst Avocado from CryptoQuant emphasizes the recovery of several indicators, suggesting a bullish phase for BTC as it recently surged by 7.5% following the Federal Reserve’s interest rate cut. With Bitcoin valued at $63,500, the market sentiment seems favorable for future price increases.

Bitcoin (BTC) is currently experiencing upward momentum, suggesting that the cryptocurrency may continue to rise in value. According to a report by the pseudonymous CryptoQuant analyst Avocado, on-chain data indicates potential support levels that could signal a positive shift for BTC in the long term, reinforcing the notion that the cryptocurrency remains in a bullish phase. Avocado points out that several on-chain indicators have reached their average support levels, aligning with recent price trends to reflect a favorable sentiment from a long-term perspective. Notably, the seven-day Simple Moving Average (SMA) of Bitcoin’s Fund Flow Ratio has demonstrated a downturn to 0.05, which is a crucial support level as it begins to recover slightly. Historically, such recoveries tend to occur at the conclusion of bear markets or halving events, paving way for significant long-term rallies in Bitcoin’s price. Another critical indicator is the 30-day SMA of Bitcoin’s Estimated Leverage Ratio, which is likewise indicating signs of recovery and has established a support range between 0.15 and 0.175. As Avocado explains, “With the approval of futures ETFs after 2021 and the recent positive news regarding Bitcoin options trading, I believe the influence of this metric will continue to grow.” Furthermore, the 30-day Exponential Moving Average (EMA) of Bitcoin’s Binary Coin Days Destroyed (CDD) is currently positioned between 0.1 and 0.3, suggesting that long-term holders are steadily accumulating BTC. Avocado mentions that a noteworthy rise in this metric’s value can often precede the end of a bull market. Adding to this optimistic outlook, Bitcoin has surged by 7.5% over the past week, partly due to the Federal Reserve’s decision to lower interest rates by 50 basis points. This monetary easing has increased cash flow within the U.S. economy and stimulated activities surrounding Bitcoin’s futures and perpetual markets, resulting in heightened open interest and a subsequent rise in the asset’s market value. As of the time of reporting, Bitcoin was valued at $63,500, reflecting a minor increase in the previous 24 hours.

The cryptocurrency market is known for its volatility, and Bitcoin, as the leading digital asset, is continuously monitored for indicators of price movements. On-chain metrics, which analyze the inflow and outflow of Bitcoin on exchanges, serve as crucial tools for investors and analysts to understand market sentiment and potential price trends. Various support and resistance levels are utilized to gauge the market’s direction, particularly amidst economic changes such as interest rate adjustments by central banks. Recent reports from analysts like CryptoQuant provide insights that could influence both short-term and long-term trading strategies for investors in Bitcoin. By evaluating on-chain metrics, traders can better interpret shifts in investor behavior and anticipate potential price fluctuations in response to market conditions.

In summary, current on-chain metrics present a positive outlook for Bitcoin as the cryptocurrency appears poised for potential price increases. Key indicators, such as the Fund Flow Ratio and the Estimated Leverage Ratio, are exhibiting signs of recovery, suggesting bullish sentiment among investors. Coupled with recent macroeconomic developments, including the Federal Reserve’s interest rate cuts, Bitcoin’s price momentum is reflective of a broader positive trend. As the asset experiences significant trading activity and accumulative behavior among long-term holders, prospects for a continued increase in value remain optimistic.

Original Source: cryptopotato.com

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