A new report published by Decentrader emphasizes 3 key on-chain data metrics, which tell us a good chance that Bitcoin will hit new all-time highs soon.
Amid a long lateral period with resistance at around $ 42,000 and support at $ 32,000, the data continues to indicate that the rally is not over, which is why it is difficult to think that the decline is going to last much longer.
Right now BTC seems willing to challenge that immediate resistance. Going through it could be signaling the beginning of the gains that the metrics point to.
“Bitcoin has kept the market on its toes as it continues to oscillate between the weekly support at $ 32,000 and the short-term resistance of the 200-day DMA currently at $ 42,000”
The market update by the firm notes that uncertainty after the recent collapse, coupled with fears surrounding the US president’s announcement on how he will approach cryptocurrencies, are keeping the price low for now.
However, the metrics they enclose in the report, and which we review below, suggest that a bullish rally may be beginning.
The Confidence Indicators of the active addresses, SOPR and S2F, tell us that Bitcoin should leave soon in search of new all-time highs
The first of the metrics reviewed in the report is the trust of active addresses. This determines if the price of Bitcoin is in the terrain of overbought or oversold, in relation to the number of active addresses on the blockchain.
It is currently at the same point that was reached after the bear market of December 2018, and the crash of March 2020.
The SOPR indicator is also at that same point, and if history repeats itself, the only way is to the upside.
SOPR is the acronym for spent output profit ratio, which translates as spent output profit ratio. It tracks the general gains and losses of the market, with which we can visualize good buy and sell areas.
The third metric that Decentrader’s analysis emphasizes is the popular Stock to Flow, which predicts that it will soon return to the model’s trajectory line. This would mean finding the long-awaited target of $ 100,000.
In the analysis they point out that nothing has fundamentally changed for BTC, we are only seeing a lot of media coverage after the big price rally started at the beginning of the year.
They add that it is very possible that we will see the price of Bitcoin rise to the S2F line in the coming months, taking us to new all-time highs before the end of the year, as the line of this metric is currently at $ 85,000.