{"id":129025,"date":"2020-03-27T11:00:37","date_gmt":"2020-03-27T11:00:37","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=129025"},"modified":"2020-04-06T01:18:34","modified_gmt":"2020-04-06T00:18:34","slug":"several-key-metrics-suggest-that-bitcoin-could-be-preparing-for-a-power-move","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/several-key-metrics-suggest-that-bitcoin-could-be-preparing-for-a-power-move\/","title":{"rendered":"Several key metrics suggest that Bitcoin could be preparing for a power move"},"content":{"rendered":"<p>Key metrics show that bulls may be betting heavily on Bitcoin as the coin reclaims ground from its late-February tumble in tandem with the global economy.<\/p>\n<p>Investors seem to be accumulating with real conviction. Bitcoin's 7-day trading average volume as measured by the Bitwise 24-hour \u201creal&#8221; <a href=\"https:\/\/www.bitcointradevolume.com\/\">spot volume index <\/a>is at the highest level since June 2019, when BTC posted its high for the year at $13,764, according to <a href=\"https:\/\/static1.squarespace.com\/static\/5df0fdb6a73a4b1d59c74702\/t\/5e74f8c005a89c78e11266f2\/1584724167315\/Weekly+update+-+Arcane+Research+%28Week+12%29.pdf\">Arcane Research<\/a>.<\/p>\n<p><a href=\"https:\/\/static1.squarespace.com\/static\/5df0fdb6a73a4b1d59c74702\/t\/5e74f8c005a89c78e11266f2\/1584724167315\/Weekly+update+-+Arcane+Research+%28Week+12%29.pdf\"><img loading=\"lazy\" decoding=\"async\" class=\"size-large wp-image-129026 aligncenter\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/03\/Screen-Shot-2020-03-27-at-9.33.59-AM-1024x390.png\" alt=\"BTC average trading volume\" width=\"1024\" height=\"390\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/03\/Screen-Shot-2020-03-27-at-9.33.59-AM-1024x390.png 1024w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/03\/Screen-Shot-2020-03-27-at-9.33.59-AM-300x114.png 300w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/03\/Screen-Shot-2020-03-27-at-9.33.59-AM-768x293.png 768w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/03\/Screen-Shot-2020-03-27-at-9.33.59-AM-1536x586.png 1536w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/03\/Screen-Shot-2020-03-27-at-9.33.59-AM-2048x781.png 2048w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/a><\/p>\n<p>This metric has more than doubled in recent weeks, spurred on by some of the biggest days ever recorded by the Bitwise spot volume index including an all-time-high <a href=\"https:\/\/cryptoslate.com\/global-interest-for-bitcoin-could-be-about-to-explode-heres-why\/\">$5.7-billion day<\/a> on March 13th.<\/p>\n<p>The volumes will be seen as a much-needed portent of bullish sentiment for Bitcoin, coming in the wake of a <a href=\"https:\/\/cryptoslate.com\/crypto-market-structure-broke-last-week-but-bitmex-wasnt-the-cause-says-crypto-fund-manager\/\">market bloodbath<\/a> and a sharp drop in hash rate, a key metric quantifying the overall security of the Bitcoin network as well as miner sentiment.<\/p>\n<p>An even more encouraging detail is another sign that long-term investors are in the midst of an accumulation cycle. According to data from Arcane Research and Glassnode, holders just started to become positioned net long and cease selling off.<\/p>\n<figure id=\"attachment_129038\" aria-describedby=\"caption-attachment-129038\" style=\"width: 1024px\" class=\"wp-caption aligncenter\"><a href=\"https:\/\/static1.squarespace.com\/static\/5df0fdb6a73a4b1d59c74702\/t\/5e74f8c005a89c78e11266f2\/1584724167315\/Weekly+update+-+Arcane+Research+%28Week+12%29.pdf\"><img loading=\"lazy\" decoding=\"async\" class=\"size-large wp-image-129038\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/03\/Screen-Shot-2020-03-27-at-11.41.54-AM-1024x847.png\" alt=\"BTC holding long vs. short\" width=\"1024\" height=\"847\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/03\/Screen-Shot-2020-03-27-at-11.41.54-AM-1024x847.png 1024w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/03\/Screen-Shot-2020-03-27-at-11.41.54-AM-300x248.png 300w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/03\/Screen-Shot-2020-03-27-at-11.41.54-AM-768x635.png 768w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/03\/Screen-Shot-2020-03-27-at-11.41.54-AM.png 1240w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/a><figcaption id=\"caption-attachment-129038\" class=\"wp-caption-text\">Bitcoin holder net position change &#8211; Arcane Research<\/figcaption><\/figure>\n<h2>Bitcoin's bouncing back swiftly<\/h2>\n<p>The market was left reeling on March 12 when the number-one crypto by market capitalization <a href=\"https:\/\/cryptoslate.com\/ftx-ceo-bitcoin-price-might-have-gone-to-zero-if-bitmex-hadnt-gone-offline\/\">cratered nearly 40 percent<\/a> in its largest intraday drop in seven years. Staggeringly, a number of top analysts assert that the coin could have <a href=\"https:\/\/cryptoslate.com\/ftx-ceo-bitcoin-price-might-have-gone-to-zero-if-bitmex-hadnt-gone-offline\/\">plunged all the way to zero <\/a>had crypto derivatives exchange BitMEX \u2014 which saw the bulk of trading volume during the plunge \u2014 not <a href=\"https:\/\/cryptoslate.com\/bitmex-freezes-as-xbtusd-crashes-10-below-bitcoin-spot-price\/\">gone offline<\/a>.<\/p>\n<figure id=\"attachment_127696\" aria-describedby=\"caption-attachment-127696\" style=\"width: 480px\" class=\"wp-caption aligncenter\"><a href=\"https:\/\/cryptoslate.com\/bitmex-freezes-as-xbtusd-crashes-10-below-bitcoin-spot-price\/\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-127696\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/03\/bitcoin-wick-1024x538.jpg\" alt=\"bitcoin price\" width=\"480\" height=\"252\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/03\/bitcoin-wick-1024x538.jpg 1024w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/03\/bitcoin-wick-300x158.jpg 300w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/03\/bitcoin-wick-768x403.jpg 768w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/03\/bitcoin-wick.jpg 1200w\" sizes=\"(max-width: 480px) 100vw, 480px\" \/><\/a><figcaption id=\"caption-attachment-127696\" class=\"wp-caption-text\">Related: <a href=\"https:\/\/cryptoslate.com\/bitmex-freezes-as-xbtusd-crashes-10-below-bitcoin-spot-price\/\">BitMEX freezes as XBTUSD crashes 10% below Bitcoin spot price<\/a><\/figcaption><\/figure>\n<p>Yet Bitcoin has staged a healthy recovery in the weeks following the global Coronavirus crash, and the bulls may now have more reason than one to be strengthening their conviction.<\/p>\n<p>Hash rate has rebounded significantly and looks to have reversed its slide downwards. It has now spiked to 112.5 million tera-hashes per second \u2014 the highest it's been since before the March 12 sell-off.<\/p>\n<figure id=\"attachment_129030\" aria-describedby=\"caption-attachment-129030\" style=\"width: 1024px\" class=\"wp-caption aligncenter\"><a href=\"https:\/\/www.blockchain.com\/en\/charts\/hash-rate?timespan=30days\"><img loading=\"lazy\" decoding=\"async\" class=\"size-large wp-image-129030\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/03\/Screen-Shot-2020-03-27-at-10.28.04-AM-1024x416.png\" alt=\"BTC hash rate\" width=\"1024\" height=\"416\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/03\/Screen-Shot-2020-03-27-at-10.28.04-AM-1024x416.png 1024w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/03\/Screen-Shot-2020-03-27-at-10.28.04-AM-300x122.png 300w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/03\/Screen-Shot-2020-03-27-at-10.28.04-AM-768x312.png 768w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/03\/Screen-Shot-2020-03-27-at-10.28.04-AM-1536x623.png 1536w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/03\/Screen-Shot-2020-03-27-at-10.28.04-AM-2048x831.png 2048w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/a><figcaption id=\"caption-attachment-129030\" class=\"wp-caption-text\">Bitcoin hash rate, 30 days &#8211; Blockchain.com<\/figcaption><\/figure>\n<p>The original cryptocurrency has also far outperformed all other major equity indexes, assets, and commodities in terms of its recovery since its most recent low, relative to the high at February 12, prior to the global Coronavirus-induced sell-off. Bitcoin is up 74 percent since bottoming out at $4,000, March 12.<\/p>\n<figure id=\"attachment_129037\" aria-describedby=\"caption-attachment-129037\" style=\"width: 1024px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/www.cryptoslate.com\"><img loading=\"lazy\" decoding=\"async\" class=\"size-large wp-image-129037\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/03\/Screen-Shot-2020-03-27-at-11.38.32-AM-1024x562.png\" alt=\"BTC return vs. major assets \" width=\"1024\" height=\"562\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/03\/Screen-Shot-2020-03-27-at-11.38.32-AM-1024x562.png 1024w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/03\/Screen-Shot-2020-03-27-at-11.38.32-AM-300x165.png 300w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/03\/Screen-Shot-2020-03-27-at-11.38.32-AM-768x421.png 768w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/03\/Screen-Shot-2020-03-27-at-11.38.32-AM.png 1338w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/a><figcaption id=\"caption-attachment-129037\" class=\"wp-caption-text\">Bitcoin return since March low<\/figcaption><\/figure>\n<p>Finally, leveraged funds trading the CME BTC futures contract have shuttered almost all of their short positions and now appear to be net long Bitcoin \u2014 or at least as long as they were in late January when the coin was in the midst of a weeks-long uptrend.<\/p>\n<p>With foreign currencies tanking to multi-decade lows against the U.S. dollar and equity markets in free-fall, these metrics will surely strengthen Bitcoin's perceived viability as a hedge against global recession and <a href=\"https:\/\/cryptoslate.com\/op-ed-bitcoin-has-never-been-closer-to-becoming-a-global-reserve-currency-heres-why\/\">prospective reserve currency<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key metrics show that bulls may be betting heavily on Bitcoin as the coin reclaims ground from its late-February tumble in tandem with the global economy. Investors seem to be accumulating with real conviction. Bitcoin&#8217;s 7-day trading average volume as measured by the Bitwise 24-hour \u201creal&#8221; spot volume index is at the highest level since [&hellip;]<\/p>\n","protected":false},"author":175,"featured_media":129060,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[120,60840,15323],"tags":[],"post_folder":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.9 (Yoast SEO v21.9.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Several key metrics suggest that Bitcoin could be preparing for a power move<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cryptoslate.com\/several-key-metrics-suggest-that-bitcoin-could-be-preparing-for-a-power-move\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Several key metrics suggest that Bitcoin could be preparing for a power move\" \/>\n<meta property=\"og:description\" content=\"Key metrics show that bulls may be betting heavily on Bitcoin as the coin reclaims ground from its late-February tumble in tandem with the global economy. Investors seem to be accumulating with real conviction. Bitcoin&#039;s 7-day trading average volume as measured by the Bitwise 24-hour \u201creal&#8221; spot volume index is at the highest level since [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/cryptoslate.com\/several-key-metrics-suggest-that-bitcoin-could-be-preparing-for-a-power-move\/\" \/>\n<meta property=\"og:site_name\" content=\"CryptoSlate\" \/>\n<meta property=\"article:published_time\" content=\"2020-03-27T11:00:37+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2020-04-06T00:18:34+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/03\/bitcoin-power.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"630\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Jonnie Emsley\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:site\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Jonnie Emsley\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"NewsArticle\",\"@id\":\"https:\/\/cryptoslate.com\/several-key-metrics-suggest-that-bitcoin-could-be-preparing-for-a-power-move\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/cryptoslate.com\/several-key-metrics-suggest-that-bitcoin-could-be-preparing-for-a-power-move\/\"},\"author\":{\"@type\":\"Person\",\"@id\":\"https:\/\/cryptoslate.com\/author\/jonnie-emsley\/#person\",\"name\":\"Jonnie Emsley\",\"url\":\"https:\/\/cryptoslate.com\/author\/jonnie-emsley\/\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/cryptoslate.com\/author\/jonnie-emsley\/\"},\"image\":{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/cryptoslate.com\/author\/jonnie-emsley\/#authorimage\",\"url\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2019\/10\/author-jonnie-emsley.jpg\",\"contentUrl\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2019\/10\/author-jonnie-emsley.jpg\",\"caption\":\"Jonnie Emsley\"},\"jobTitle\":\"Contributor\",\"description\":\"Jonnie is a writer and blockchain enthusiast based in Ho Chi Minh City, Vietnam. 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