Bitcoin’s (BTC/USD) on-chain data is painting a picture of potential change, with key support levels indicating a promising long-term outlook for the cryptocurrency. According to CryptoQuant’s analysis, several on-chain metrics have reached crucial support points, historically marking the end of bearish periods and the start of new bull runs.
One of the most significant indicators is the 7-day Simple Moving Average (SMA) of the Fund Flow Ratio. This metric, which tracks the flow of funds into and out of exchanges, has bounced back after touching 0.05, a level that has historically acted as a key support line. This rebound suggests that investors are returning to exchanges, a pattern often associated with the conclusion of bear markets or halving events and the beginning of long-term bullish momentum for Bitcoin. Past rebounds from this level have been followed by substantial price increases.
Adding to the positive sentiment, the 30-day SMA of the Estimated Leverage Ratio has also reached a key support range between 0.15 and 0.175, with signs of recovery. This metric, which tracks the amount of leverage in Bitcoin trading, gained significance after the approval of Bitcoin futures ETFs in 2021 and continues to be a crucial indicator of market sentiment. The recent positive news around Bitcoin options trading further strengthens the bullish implications of this support level.
The 30-day Exponential Moving Average (EMA) of Binary Coin Days Destroyed (CDD) has also been hovering between 0.1 and 0.3, indicating that long-term Bitcoin holders are accumulating more of the asset. Historically, significant spikes in Binary CDD signal the end of a bull market. The current accumulation phase suggests that long-term investors remain confident, viewing the current market levels as an opportunity to acquire Bitcoin before a potential price rally.
The convergence of these on-chain metrics reaching key support levels presents a positive long-term outlook for Bitcoin. These signals suggest that the cryptocurrency may be entering a phase of sustained growth, following similar data patterns observed in past cycles. This bullish sentiment surrounding Bitcoin will be a central focus at Benzinga’s Future of Digital Assets event on November 19, where industry leaders will explore the future of digital assets and decentralized finance.
