We are not having a good day. The entire TOP 10 crypto dawned in the red. At the time of this writing, the price of Bitcoin falls to $ 10,413 per unit, decreasing 4% in the last 24 hours.
ETH, for its part, has fallen by 9.06% during the current day, thus trading at $ 339. Meanwhile, XRP is trading at $ 0.23 after a 5.25% decline.
Despite this behavior, there is still not much to worry about. On the contrary, it is possible that a nearby demand zone will cause strong purchases, encouraged by discount prices.
Bitcoin on chain metrics indicate it’s time to buy
Beyond the price of Bitcoin, it is always useful to review the metrics of the chain, since they are the ones that really move the price from one side to the other.
A recent tweet from Crypto Quant groups together the reading of 10 BTC on-chain indicators, of which 7 predict buy, 2 buy strong and only 1 is neutral.
With this summary we can be more than sure that the climb we have been seeing is totally healthy, and that it still has to go.
The metrics that are listed in this tweet are divided into 4 groups: related to Miners, exchanges, stablecoins and network.
Although old data do not guarantee an absolute success, they do indicate where most of the probabilities are placed. And in a case like the current one where the vast majority agree on the bullish side, it is really useful to take them into account.
Long-term Bitcoin price trend
And along with the growth indicated by the on-chain metrics, the price is following these fundamentals, while leaving signals of what is most likely to happen.
Historically it is more than clear that the trend of the price of Bitcoin is totally bullish.
In the monthly chart we observe a behavior that indicates that the long-term reversal has ended.
For the last 2 years the price has been locked in a kind of bullish pennant, and although we have not yet seen a really effective breakout of this formation, the price has been trying to break out of it recently.
The 8 EMA and 18-month SMA moving averages have remained crossed to the upside, and functioning as dynamic supports, supporting the view of a resumption of the long-term uptrend, which could easily go looking for a new all-time high.
From the weekly chart we can identify this trend. It is currently bullish as a result of increasingly higher highs and lows, followed by the 8-week EMA and 18-week SMA.
These moving averages recently served as dynamic supports, as price sought to visit an uptrend line.
This behavior seems to be starting a new upward momentum in the medium-term trend, which is why I don’t think the losses in the last 24 hours should be very worrying.
Short term trend
In the short term, the trend recently turned to the upside, thanks to continued resistance breaks that led the 8 EMA and 18-day SMA to cross to the upside.
Today these moving averages are being visited, and they may function as dynamic supports as the price of Bitcoin falls.
All our publications are informative, so in no case should they be acts as investment advice.