On-Chain Analysis Suggests That Bitcoin (BTC) Has Formed A Bottom
Within the last 24 hours, the price of Bitcoin has increased by 5%, which is an optimistic sign. However, this was not the case for several months, as it has already slipped below the support level of $1600 several times. But it seems that Bitcoin has finally formed a base around $15475 and is now ready to bounce higher.
For now, the chances of $1575 serving as the bottom for Bitcoin (BTC) are very high, so we might witness one more rally in the current bear market before the end of 2022.
BTC Active Addresses Close To 1 Million
In fact, even the on-chain analysis suggests that we might see a rally in Bitcoin very soon. If we look at history, the number of active addresses in the last 24 hours dropped below 1 million during June. At that time, the price of Bitcoin crashed and reached $17593. Ever since then, many attempts have been made to reach the 1 million mark once again, but they all failed.
However, this is about to change as the active addresses have changed from a value of 922,000 to around 965,000 in the last few months. In short, the active addresses are increasing and are almost close to reaching the 1 million mark. This is an indication that long-term investors are coming back to Bitcoin.
And if we look at the MVRV indicator, it also shows a steady and consistent increase in the number of Bitcoin Holders. For now, the MVRV metric is around -6.2% which is an indication of the average loss faced by investors during the last month. At one time, this indicator was at -18.2%, which is another good news for the bulls.
Another important on-chain metric is known as the 'exchange flow balance.' Through this metric, we can look at the quantity of Bitcoin moving in and out of different exchanges. Once again, this metric reveals that people are more interested in holding bitcoin for the long term as compared to the last few months.