Bitcoin: On-Chain Signals and Capital Influx Hint Potential Rally
A cryptocurrency analyst noted several promising signs hinting at a potential upswing for Bitcoin (BTC).
Reports from trader Ali Martinez suggest a surge in new Bitcoin wallet creations, surpassing 700,000 on a day when BTC hit $35,000. This surge signifies potential network growth and often aligns with future price movements.
Martinez highlighted BTC’s current price surpassing the average acquisition cost of long-term holders, a metric tracking coins held for over six months. This metric historically signaled significant upward trends in Bitcoin’s value.
When BTC crossed the $34,150 threshold, it exceeded the cost basis of holders keeping coins for six months to three years. Sustaining this level could bring previously underwater holders back into profitability, indicating a potential shift toward a bullish market sentiment.
Notably, historical data showed that when Bitcoin surpassed this holder cost basis in the past, it resulted in substantial bull runs of 4,778%, 99%, and 787%, respectively.
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Martinez is also observing a substantial influx of capital into digital assets. Over a 30-day period, nearly $10.97 billion flowed into the crypto sphere, signifying heightened investor confidence in the market’s potential.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
