This On-Chain Metric Says Bitcoin Risk Is The Highest In Three Years

Bitcoin price is trading well above $58,000 currently and is arguably only just beginning its bullish impulse. Prices are expected to reach hundreds of thousands per coin, and while few deny that outcome, it might not arrive as soon as some investors think.
According to a de-facto on-chain tool for timing local tops and bottoms, Bitcoin risk is now at the highest potential for downside in three years. Past data shows when the metric gets this overheated, a reset can happen before the uptrend continues. In some instances, however, not only did the tool call the local top, it was able to pick the peak of the bull market. Which is it this time?
BTC Network Value To Transactions Golden Cross Indicates Greatest Downside Risk In Years
When Bitcoin was created, with it arrived distributed ledger technology better defined as blockchain. Transactions are recorded transparently, and all on-chain activity is visible to all who desire to view it. The technology offers an innovative accounting system, but the data it provides can also be used effectively for fundamental analysis, and can even be used to predict future price movements with some degree of accuracy.
The most obvious example of on-chain activity impacting price action, is in the protocol’s hard-coded block reward halving, which reduces the supply of BTC that comes into the market. Other important metrics include the total number of addresses, how many coins they contain, …
Story continues on Bitcoinist

Related posts
BitcoinBitcoin.comBTCCanadianCanadian CondoCanadian Condo CompanyCondoscryptocurrencyHoward UlmerLisa KramerNewsReginareservesSaskatchewanThornton PlaceThornton Place Condominium CorporationTreasurerTreasury

Canadian Condo Company Invests in Bitcoin, Hopes to Become ‘Self-Sustaining Real Estate’

A few months ago a trend started where well known businesses like Microstrategy, Square, and Tesla started adding bitcoin to their company balance sheets. Now a Canadian condominium company has decided to invest in bitcoin in order to replace some…
AA NewsBitcoinbitcoin etfBrazilBTCEURBTCGBPbtcusdBTCUSDTCanadaCrypto NewsSocial

Brazil’s Securities Regulator Approved the First-Ever Bitcoin ETF in Latin America

It appears that 2021 is the year for Bitcoin ETF approvals as yet another exchange-traded fund tracking the performance of the first-ever cryptocurrency will emerge – this time, in Brazil. The country’s Securities and Exchange Commission (CVM) has given its…
AnalysisBitcoinBTC Trading ViewHideCryptopanicNewsNews 1SocialTrading View

Bitcoin Price Analysis: 19 March

French economist Marion Laboure, macro-strategist at Deutsche bank, asserted that Bitcoin was now “too important to ignore”. True to that statement, in the short-term, the price climbed past $56,950The post Bitcoin Story continues on AMB Crypto