This week’s on-chain data report pointed out that BTC’s technical indicators are trending upwards in the long-term.
According to the weekly analysis of the Bitfinex Alpha Report, which reviews a number of Bitcoin (BTC) on-chain indicators that appear bullish, these include short- and long-term HoDLers sales, which reflect profitability over the past three months and in the face of Actively absorb the market in response to any selling pressure.
Likewise, the research shows that the world’s largest cryptocurrency by market capitalization has been strengthening in spot markets, which only happens in late bear markets and early bull markets, even if it doesn’t mean the market has returned to “upload-only” terrain.
Additionally, Bitfinex Alpha also mentioned other market-positive technical indicators in its report. According to Bitfinex's analysis above, the adjusted net payout-to-revenue ratio is now higher than 1, which indicates that net sales are favorable, and conversely, the RPLR (ratio of realized gain to loss) is now also higher than zero, which is " Another indicator of profitability".
By the end of 2022, PayPal has $604 million in Bitcoin and other cryptocurrencies.
first level title
Multiple RHODLs
Over the past three months, the bullish indicator Bitcoin Realized Holdings Multiple (RHODL) mirrored the market's rise, maintaining a bullish slope over a 90-day period, equal to, ie, sales of HODLers "bringing Sustained income".
It also shows a slight uptick in demand from small and/or new bitcoin investors, and highlights that long-term holders are also profiting, not just short-term holders. Instead, the market has attempted to "absorb the selling pressure," with long-term investors showing greater confidence in spending digital assets.
As Bitfinex explained in its previous installment, long-term investors start to “rebate,” even though they are smaller and later than short-term investors. BTC has not been affected by this and its price is relatively stable, although this situation may appear to be a bearish position.
“This does not mean the market has returned to bullish territory, but it does suggest that strength in the spot market only occurs when a bear market ends and a bull market begins,” they emphasized on the platform.
first level title
Ecosystem Eyes Potential Changes in Bitcoin Price
It should be remembered that the "yield supply" is the amount of BTC that last moved when the price in USD was lower than it is now, which causes them to be bought at a lower price and wallets will hold "book" profits.
Bullish on-chain metrics
On the flip side, the supply-for-profit indicator is up 20% since the start of the year, meaning the biggest and longest-term investors are now holding profitable cash positions on paper. That's good for the second half of the bear market, as this 90-day uptrend following a downtrend suggests "historically" providing positive buy signals for the next two years.
It also refers to the Expanded Profit Rate (SOPR) for various investor profiles. As mentioned in the previous analysis, the adjusted net SOPR has risen above 1, which means that BTC on-chain is currently profitable.
“After a long period below 1 (BTC net loss), such a move has historically been an excellent buy signal. It also shows that Bitcoin is on the way to profitability while the price remains stable. We have to check Net Realized P&L ratio to understand why this is still a bullish signal,” the Bitfinex Alpha report detailed in its weekly analysis.
The SMA, the 90-day simple moving average of Bitcoin’s Ratio of Realized Profit and Loss (ROLR) metric, crossed zero for the first time in history last April, implying that gains in dollar terms were more corresponding than losses in the BTC market.
"This usually means that sellers with unrealized losses have dried up and there is a healthier influx of demand to absorb profit-taking," according to the gauge's records. So, it's a bullish sign for long-term investors.
Bitfinex further detailed that when RPLR bottomed out at around 0.2 in 2019, the price of BTC had fallen to around $3,600, but then the digital currency rebounded around 19 times, setting a record high in a short period of time. Less than three years later, at the end of 2021. RPLR bottomed out again recently, around 0.18 (the lowest level since 2011), and the digital currency Bitcoin is trading around $16,000 in November 2022.
first level title
HODLer Conviction nears all-time highs
Finally, Bitfinex Alpha mentions in its report that “reserve risk” due to BTC recently fell to an all-time low (below even 2019 or 2020 lows).
This reserve risk is a long-term periodic oscillator that models the relationship between current prices and investors' long-term beliefs, current prices are the motivation to sell, and belief ratios are a series of sub-indicators that means they take into account different The opportunity cost of selling, so the lower the ratio, the more confident investors are.
In terms of the BTC Market Cap Realization Ratio (MVRV), there have also been signs of recovery since the beginning of the year.
The Catalan Digital Cluster is working to reintroduce marine litter to the market through blockchain.
Looking at the data reflected in the bitcoin.com MVRV Z Score chart, the Bitfinex Alpha Report explains that a Z-score falling into the green box means that the market value is lower than the market value. Recovery of digital assets after extended periods of time in the green box has historically delivered superior returns. While this is another flashingly bullish indicator, it's important to note that sharp moves outside the box are often followed by periods of consolidation and sometimes prolonged pullbacks. Extended for BTC.
Adding, "Such behavior on the MVRV Z-score indicator has a 100% success rate of price appreciation over a 12-18 month investment horizon," they concluded.
Original link
