Is Now The Time To Buy Bitcoin? On-Chain Data Reveals Key Indicators
After briefly falling back to $90,000 earlier this week, Bitcoin rebounded strongly, climbing above $95,000.
Bitcoin is currently trading at $95,224, a new all-time high Up 7% in the past two weekssignaling new bullish momentum.
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Key Indicators Highlight Best Buying Opportunities
As Bitcoin continues to rise, renowned on-chain analytics platform CryptoQuant shares opinion Key indicators that can help potential investors determine the best entry point.
Drawing on historical data and market behaviorCryptoQuant highlights patterns in price corrections, short-term holder strategies, speculative bets, and volume indicators to guide investors through Bitcoin’s ongoing bull run.
According to CryptoQuant, historical bull markets show that even during periods of sustained growth, price declines are inevitable.
For example, the 2017 bull market experienced corrections of up to 22%, while the 2021 rally saw declines of 10% and 30%. The 2024 bull market has already seen price corrections of 15% and 20%, suggesting that periodic corrections may be strategically rewarding. buying opportunity.
The platform also highlights the importance of the short-term Holder Realized Price metric, which reflects the average cost basis for investors in the near term. This indicator is usually used as critical support Levels during bull markets as short-term holders are more likely to purchase at break-even prices, thus enhancing price stability.
Buy on a short-term holder average cost basis
The realized price for short-term holders can be considered a buy-on-the-dip level during a bull market.
Investors tend to buy at breakeven prices, making this indicator a visualization of price support. pic.twitter.com/mTDpuhaK8Y
— CryptoQuant.com (@cryptoquant_com) November 27, 2024
Additionally, CryptoQuant pointed to the phenomenon of “open interest surges,” where speculative positions are liquidated during periods of heightened price volatility. This process can create favorable entry points for investors looking to take advantage of a temporary market reset.
Finally, the Net Acceptance indicator, which measures the balance between buying and selling pressure, suggests that peak selling activity may signal a balance between buying and selling pressure. future price growth.
According to recent data from CryptoQuant, prices below $30,000,000 may indicate that sellers are close to exhaustion, paving the way for a potential rise.
Bitcoin’s key support level
While Bitcoin’s current momentum hints at another potential rally, analysts warn of the importance of maintaining key support levels. Cryptocurrency analyst Ali recently Confirmed The $93,580 price area was a key demand level, with approximately 667,000 addresses purchasing a total of nearly 504,000 BTC.
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The analyst said staying above this level is critical to avoid potential selling by holders at this price.
1. Key demand areas #bitcoin Viewed for $93,580, with 667,000 addresses purchasing nearly 504,000 Bitcoin USD. Staying above this support level is necessary to prevent these holders from selling! pic.twitter.com/UdXTZOYzGH
— Ali (@ali_charts) November 28, 2024
Featured image created using DALL-E, chart from TradingView
