The way Cryptocurrency market has performed today, it looks like the bears have a strong hold for the weekend and have tapped down bulls. Past few weeks Bitcoin bulls have failed to rally, struggling to gain $45,000 range back.
The Bitcoin with its bearish cycle has dragged almost every cryptocurrencies along with it signaling the market in red. The global cryptocurrency market has dropped by 1.94% to $1.9 trillion in the last 24hrs.
Though Bitcoin is currently having a tough time facing bearish pull, the three on-chain metrics that have a positive approach. Lets understand those
- MVRV Model
The first and the most extensively used on-chain metric for Bitcoin price is the 365-day Market Value to Realized Value (MVRV) mode. This index will help us understand investors sentiments at any given point of time and with the help of this index we can assess the average profit/loss of every market participant that has bought Bitcoin over the past year.
Santiment, an analytic firm data says, a value below -10% points towards short-term holders who are selling at a loss and here long-term holders usually tend to accumulate. Hence the value below -10% is considered as an opportunity zone.
At present, the 365-day MVRV is fluttering around the zero line, indicating investors are not under the profitable zone. Hence, there is still a chance for Bitcoin to see an upswing before sell-off emerges.
- Whales Supply Distribution
The next indicator for any long-term holders to focus on is the supply distribution of whales that hold Bitcoin.
Since June 2021, investors who hold between 1,000 to 10,000 BTC have accumulated. Hence the number of former market participants have surged from 2,034 to 2,166 accounting for a 6.5% increase. This spike in holders often indicates that institutions are optimistic and are hoping for an uptrend from Bitcoin price.
- Exchange Net Position
The third in the list is the exchange net position change indicator and even this indicator showcases how the large investors are behaving. Since March 2022, there has been an outflow of 100,000 Bitcoin from centralized institutions reducing the sell-off pressure.
The post appeared first on Coinpedia
