How long will it take for Bitcoin to reverse the trend?
As a store of wealth, Bitcoin holds great value to investors, especially those who share the positive sentiment about price movements. However, at the time of writing, on-chain indicators are a bit inconvenient for the leading cryptocurrency.
REDVirtual countertrend Bitcoin?
While BTC is not entirely bearish, it may be slowly approaching a potential turnaround. The downtrend on the NVT Ratio chart indicated this possibility. It did so after the index hit a nine-year high. Such highs often result in a bearish trend reversal on the chart.
Ratio NVT (orange) | source: Glass knot
The number of new addresses has declined since March 2021 and after the crash in May fell even more, as the number of new addresses has fallen to the level of January 2020 to just 324 thousand, investors do not seem to want to invest in this property.
Number of new addresses from Bitcoin (orange) | source: Glass knot
Finally, the observation of the difficulty band compression shows that the indicator is at the May 2018 level. Getting away from the blue zone is not the best location for BTC as this blue zone is a highly compressed zone and has been a good buying opportunity in the past. This compression threshold is set to 0.05 while the indicator is 0.13 at the time of writing.
Compression difficulty range (orange) away from the buying zone | Source: Glassnode
Miner already back?
This could be bullish news that will help offset the bearish momentum that is forming. After the recent decline, the hashrate rose again when the 7-day moving average surfaced. This could be a sign that the effects of the “mining migration” are diminishing.
Average bitcoin hashrate | Source: Glassnode
To sum up, Bitcoin is likely to start rising again due to the effects of this development.
You can see the BTC price here.
Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
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Bitcoin
How long will it take for Bitcoin to reverse the trend?
As a store of wealth, Bitcoin holds great value to investors, especially those who share the positive sentiment about price movements. However, at the time of writing, on-chain indicators are a bit inconvenient for the leading cryptocurrency.
REDVirtual countertrend Bitcoin?
While BTC is not entirely bearish, it may be slowly approaching a potential turnaround. The downtrend on the NVT Ratio chart indicated this possibility. It did so after the index hit a nine-year high. Such highs often result in a bearish trend reversal on the chart.
Ratio NVT (orange) | source: Glass knot
The number of new addresses has declined since March 2021 and after the crash in May fell even more, as the number of new addresses has fallen to the level of January 2020 to just 324 thousand, investors do not seem to want to invest in this property.
Number of new addresses from Bitcoin (orange) | source: Glass knot
Finally, the observation of the difficulty band compression shows that the indicator is at the May 2018 level. Getting away from the blue zone is not the best location for BTC as this blue zone is a highly compressed zone and has been a good buying opportunity in the past. This compression threshold is set to 0.05 while the indicator is 0.13 at the time of writing.
Compression difficulty range (orange) away from the buying zone | Source: Glassnode
Miner already back?
This could be bullish news that will help offset the bearish momentum that is forming. After the recent decline, the hashrate rose again when the 7-day moving average surfaced. This could be a sign that the effects of the “mining migration” are diminishing.
Average bitcoin hashrate | Source: Glassnode
To sum up, Bitcoin is likely to start rising again due to the effects of this development.
You can see the BTC price here.
Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
At home at home
According to AMBCrypto
Follow the Youtube Channel | Subscribe to telegram channel | Follow the Facebook page
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