After the one-year-long bear market, the crypto industry has finally gained an upward trend as 2023 started. The top data providers and analysts are optimistic about bitcoin (BTC)’s price as the on-chain indicators show bullish movements.
According to the on-chain data provider Glassnode, the percentage of BTC supply last active before five or more years has reached 27.679%, marking new all-time highs (ATH). Per the data, this indicator has constantly been rising since the start of 2022 and recorded the previous ATH yesterday.
Similarly, the amount of supply last active in two or more years has reached an ATH of 48.631%, according to Glassnode. Per the data provider’s chart, the previous peak percentage was recorded in 2021 and had been consolidating since then.
Bitcoin shows bullish signs
The digital gold, bitcoin, has been showing five bullish signs, according to the on-chain data and analytics provider CryptoQuant. The first indicator, per the analyst, is the movement of assets from spot to derivatives platforms as the investors and traders are trying to “increase their market upside exposure (leverage).”
Moreover, the Market Value over Realized Value (MVRV) ratio, Net Unrealized Profit over Loss (NUPL) percentage, and the Puell Multiple are the next three indicators that have reached their 365-day moving average, per CryptoQuant.
According to the analyst, these three indicators show that bitcoin is about to start a new uptrend.
Furthermore, CryptoQuant’s P&L Index, which combines multiple indicators such as the MVRV ratio, NUPL, and LTH/STH SOPR, has also been delivering a buying signal for bitcoin.
“However, Bitcoin appears to be expensive in the short term, posing some risks of a pullback (price increase too quickly in the previous week.”
Bitcoin is currently trading at $20,835, down by nearly 2% in the past 24 hours and up by over 15% in the last seven days.
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