Bitcoin Price Eyes New All-Time High Soon As Per 3 On-Chain Indicators


The Bitcoin (BTC) price made a strong move to $71,000 earlier this week and holding around it firmly making a new base formation for the asset class. Market optimism has once again returned with investors eyeing a new BTC all-time high shooting past $74,000. Let’s take a look at the three on-chain indicators that hint at the bullish momentum to continue.

1. Bitcoin Whale Reaccumulation

Following a significant distribution phase in March, institutional investors have shifted towards reaccumulation over the past two weeks, according to data from CryptoQuant. This renewed buying activity is already influencing market prices and is expected to strengthen further in the coming weeks. If this happens, the Bitcoin price could enter a new price discovery zone by hitting a new all-time high.

Courtesy: CryptoQuant

2. Bitcoin Price NVT Golden Cross Hints Local Bottom

CryptoQuant has noted that since February 2024, the NVT GC indicator has consistently hit local bottoms within the range of 0.00 to -1.00 points. Currently, NVT GC stands at 0.14 points, suggesting a potential local bottom in the $69K-$70K region.

The recent $886.6 million inflow into Bitcoin spot ETFs further supports this analysis. CryptoQuant will monitor NVT GC closely and provide updates as it approaches the critical white zone.

Courtesy: CryptoQuant

3. Bitcoin Volatility Index and Adjusted MVRV

A key indicator of Bitcoin’s volatility, the Bitcoin Volatility Index (SMA-30d), is currently experiencing a significant dip. This index factors in trading activity on exchanges, suggesting a potential slowdown in price swings for the cryptocurrency.

The data paints a picture of unusual calmness, with historical records showing only four instances of such low volatility in the past six years. This could be interpreted as a sign of stability, but some analysts might view it with caution.

Courtesy: CryptoQuant

In addition, an analysis of the bull market’s structure using the Adjusted MVRV (30DMA/365DMA) metric highlights similarities between the current market and the 2015-2018 period. Surpassing the halfway mark, the current trajectory mirrors a smooth progression devoid of the turbulence experienced in the previous cycle.

Courtesy: CryptoQuant

Along with all these indicators, the open interest in Bitcoin has surged past $2 billion in just the last three days highlighting strong action in the derivatives market. This can lead to the Bitcoin price surging to new highs.

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Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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