• CryptoSlate’s latest market report suggests that Bitcoin is emerging from the depths of despair due to improved on-chain data.
• On-chain indicators suggest that a bottom has been reached and a bull market is currently in the making, with an uptick in daily users, increased transaction throughput, and demand for block space.
• Technical pricing models have flipped, indicating a new period of growth for Bitcoin.
Early Signs of a Bull Market
CryptoSlate’s previous report showed that despite widespread macro uncertainty, most on-chain indicators suggest that a bottom was formed. However, identifying this bottom is just the first step in predicting future market movements – other on-chain metrics are required to confirm the end of the bear market.
The Bitcoin Network is Expanding
A strong indicator of network performance is the number of users interacting with it. Early bull markets have all begun with an increase in daily users, transaction throughput, and demand for block space. This can be seen when looking at the momentum of new addresses on the Bitcoin network – when the 30-day simple moving average (SMA) crosses above the 365-day SMA, it indicates an expansionary period in which prices tend to rise gradually over time. Data analyzed by CryptoSlate shows this trend occurring now as both address and transaction count momentum have spiked significantly since early this year.
The Market is In Profit
For miners, profit or loss depends heavily upon fees earned from transactions processed by them; if fees exceed their costs then they can make money even during bear markets. The good news here is that miner revenue from fees has begun increasing again – a sure sign that more people are transacting thus driving up fees paid by each user and creating profits for miners once more – something not seen since before LUNAR collapsed last year.
Technical Pricing Models Have Flipped
Technical pricing models are also showing signs of bullishness as they’ve recently flipped positive after remaining bearish since late 2020. These technical indicators use price movement patterns to make predictions about where prices may go next – having flipped positive again suggests further growth ahead for Bitcoin’s price as well as its network activity metrics such as hash rate and mining difficulty which have also been increasing steadily since early 2021.
On-chain data points towards a possible end to Bitcoin’s bear market with increased user numbers, higher fee revenues for miners and technical pricing models flipping back into bullish territory all suggesting further growth ahead for its price over time. With these trends continuing to hold strong it seems like we may soon see a return to pre-bear market levels once more!