Key On-chain Metrics to Watch As Bitcoin (BTC) Flirts Around $50,000

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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.

Courtesy: Santiment

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”.

Courtesy: Santiment

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.

courtesy: 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.

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Bhushan Akolkar

Bhushan is a seasoned crypto writer with over eight years of experience spanning more than 10,000 contributions across multiple platforms like CoinGape, CoinSpeaker, Bitcoinist, Crypto News Flash, and others. Being a Fintech enthusiast, he loves reporting across Crypto, Blockchain, DeFi, Global Macros with a keen understanding in financial markets. 

He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills. Bhushan has a bachelors degree in electronics engineering, however, his interest in finance and economics drives him to crypto and blockchain.

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