MEXCKey On-chain Metrics to Watch As Bitcoin (BTC) Flirts Around $50,000
Bitcoin (BTC) has been participating in the crypto bull run throughout last month. However, the world’s largest cryptocurrency has faced multiple resistances at around $50,000 levels. As of press time, Bitcoin is trading at $49,510 levels with a market cap of $923 billion.
There are some important on-chain metrics that can give us some idea into BTC’s future price action. The Bitcoin network activity has seen a sharp uptick recently. As per on-chain data provider Santiment, the daily addresses activity has surged past 1 million for the first time in two months.
Furthermore, tracking the funding rates on Binance, there’s a strong bullish consensus among derivative traders. The Santiment report notes:
“Historically spikes in funding rate have coincided with upcoming price tops. It’s not necessarily that it’s going to happen immediately but it’s a sign that people are becoming a bit too confident about what’s going on with BTC price. There’s still room to go before we reach a danger zone”.
Bitcoin Whale Transactions Hit A High
Data provider Santiment further explains that Bitcoin whale transactions have also been on a strong uptick recently. “With this psychological level hit for the first time since mid-May, whale transactions exceeding $100k+ have hit their highest level since late July,” writes Santiment.
Additionally, Bitcoin’s market-value-to-realized value (MVRV) ratio still remains relatively low. Thus, there’s a lot of scope for the Bitcoin price to grow before we hit the danger zone.
Apart from these on-chain metrics, a lot of market analysts are bullish for the Bitcoin price rally in the upcoming months of 2021. Anthony Scaramucci, founder of SkyBridge Capital recently noted that he expects the Bitcoin price to hit $100,00 i.e. 100% gains from its current price.
Also, as per the stock-to-flow (S2F) model from PlanB, the Bitcoin price will hit $100,000 this year itself. The S2F model has been working quite accurately so far.
#Bitcoin August closing price $47,156 .. like clockwork pic.twitter.com/3hkp71FTXo
— PlanB (@100trillionUSD) September 1, 2021
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