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Writer's picturemeowdini
May 232 min read

Bitcoin's Bigger Move: On-Chain Metrics Signal Major Upside Potential

Bitcoin (BTC) is poised for a significant price movement as key on-chain metrics indicate a potential bullish surge. After a steady climb from a low of $56,500, Bitcoin’s price has been striving to hold above $70,000. According to Glassnode analysts, the cryptocurrency is preparing for a "bigger move" to the upside, supported by easing distribution pressures and a rebalancing of crucial price metrics. This article delves into the technical and on-chain data pointing to Bitcoin’s next big leap and what it means for the market.



Key Points:

  1. Easing Distribution and Slowing Sell-Side Pressure:

  • Bitcoin’s recovery to $71,000 is attributed to decreasing sell-side pressure and reduced volatility.

  • The Supply Last Active Age Band metric shows a decline in one-year and two-year cohorts, while the three-year-plus cohort is holding, indicating anticipation of higher prices.

  1. Long-Term Holder (LTH) Behavior:

  • The LTH Binary Spending Indicator shows a decrease in distribution pressure over recent weeks.

  • This decline in selling activity gives bullish investors more room and less resistance, aiding potential price increases.

  1. Local Divergence Between LTH and STH Supply:

  • A developing local divergence between LTH and STH Supply suggests a cooling off of distribution pressure from mature investors, reinforcing a bullish outlook.

  1. Macro Resets and Investor Expectations:

  • Bitcoin’s recovery from the $56,500 low has reset price valuations and long-term investor expectations.

  • Key on-chain metrics have rebalanced, hinting at a significant upside movement for BTC.

  1. Sell-Side Risk and Market Equilibrium:

  • The Sell-Side Risk metric, which monitors volatility, shows a significant decline, indicating the market has found equilibrium.

  • Reduced sell-side pressure from mature investors has lessened headwinds, allowing modest demand to stimulate positive price action.

  1. Strong Underlying Support:

  • Bitcoin's sharp recovery above $60,000, after the May 1 flash crash, shows robust support around this level.

  • The In/Out of the Money Around Price (IOMAP) model highlights strong support between $61,553 and $67,860, where significant BTC buying activity has occurred.

  1. Price Projections and Analyst Insights:

  • Popular trader Daan Crypto Trades notes Bitcoin’s strong monthly chart, with key support around $60K.

  • Analyst Ali Martinez suggests that if Bitcoin stays above $65,125, it could reach a local top of around $77,593 before any correction.



Bitcoin's technical and on-chain data indicate a substantial bullish move on the horizon. With easing distribution pressures, strong underlying support, and key metrics rebalancing, Bitcoin is well-positioned for a potential surge. As the market finds equilibrium, even modest demand could drive significant price action, pushing Bitcoin toward new heights. Investors and analysts are closely monitoring these developments, anticipating Bitcoin’s next major move in the market.



Disclaimer:

This article is for informational purposes only and does not constitute financial, investment, or legal advice. The views expressed herein are those of the author and do not necessarily reflect the official policy or position of any agency or organization. Readers should consult with a qualified professional before making any investment decisions based on the content of this article.


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