Bitcoin (BTC) remains firmly “bullish” at $23,000, according to new on-chain metrics from one of the best-known names in the industry.
one in advance On January 28, market cyclist and on-chain analyst Cole Garner revealed that he had “tested and verified” a bitcoin trading tool.
Garner: BTC Price Signals Should Stimulate Bulls
As the BTC/USD pair attempts to break above $23,000, the debate is now turning towards the possibility of a significant price correction.
For Garner, who presented a snapshot of various trading signals to Twitter users over the weekend, there’s no question: The picture is firmly green.
“They’re looking very bullish right now,” he summarized in the attached commentary portion.
One metric compares the ratio of BTC and stablecoins on exchanges. A screenshot shows it hitting a multi-year high, surpassing any event’s high since the start of 2020.
“It rarely fails,” Garner said, without elaborating on its mechanism of action.
Traditionally, high liquidity in stablecoins indicates a bullish continuation, with bitcoin or other crypto assets “waiting in the wings”.
Garner presented the on-chain volume to earnings ratio, which reached its highest level in at least three and a half years.
“It generates bullish trading signals with long history. It’s just too bullish,” he reiterated.
According to the latest data from on-chain analytics firm Glassnode, actual gains versus actual losses continue to see an expected recovery in line with price growth.
As Cointelegraph reported, net unrealized gains and losses – the portion of the BTC supply that is not being traded – also changed due to bitcoin’s 40% gain this month.
Miners have a chance after capitulation
Further optimism focuses on the recovery of bitcoin miners.
According to the popular metric Hash Ribbon, the bitcoin mining industry has recently emerged from a period of capitulation that followed the BTC price drop following the FTX crash.
Miners use the Hash Ribbon hash rate to determine the duration of the stress. These rallies have historically coincided with BTC price “corrections”, as described this week by the global macroinvestment and digital asset management firm; Wakem Capital Management.
it’s falling Data from Glassnode, Wakem highlighted that the latest capitulation exit came just before the FTX crash, denying bitcoin bulls the gains traditionally associated with the event.
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