Analysis: Bitcoin On-Chain Metrics Signal Strong Upside

Source

Uk Jin

Summary

Glassnode said Bitcoin is showing a strong bullish signal.
It said Bitcoin's momentum has risen above its baseline, while the risk index has fallen to zero.
It added that Bitcoin often posted a strong uptrend in past periods when those two conditions appeared at the same time.

Forecast Trend Report by Period

Bitcoin is showing a strong bullish signal in on-chain data, Glassnode said.

In an analysis published on April 24, Glassnode said Bitcoin's recent price action has entered a zone with a high probability of further gains.

The key indicators are momentum and risk.

Glassnode said Bitcoin's momentum, which reflects the market's capacity for further price gains, is currently above its baseline. By contrast, the risk index, which measures market overheating, has fallen to zero.

Historically, Bitcoin has often posted strong rallies when those two conditions appeared at the same time, it added.

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