{"id":130211,"date":"2020-04-10T14:00:29","date_gmt":"2020-04-10T13:00:29","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=130211"},"modified":"2020-04-25T09:29:54","modified_gmt":"2020-04-25T08:29:54","slug":"these-critical-on-chain-metrics-reveal-that-bitcoin-hit-bottom","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/these-critical-on-chain-metrics-reveal-that-bitcoin-hit-bottom\/","title":{"rendered":"These critical on-chain metrics reveal that Bitcoin hit bottom"},"content":{"rendered":"<p>Regardless of the global economic meltdown, several on-chain metrics estimate that Bitcoin reached a market bottom and could be ready to resume its historic uptrend.<\/p>\n<h2>Fear reigns the market<\/h2>\n<p>Over the past few weeks, Bitcoin has been able to <a href=\"https:\/\/cryptoslate.com\/why-analysts-are-bullish-after-bitcoins-just-saw-an-explosive-10-surge-to-7400\/\">recover<\/a> most of the losses incurred during the Mar. 12 <a href=\"https:\/\/cryptoslate.com\/trader-warns-institutions-wont-ever-invest-in-bitcoin-large-scale-due-to-the-overnight-plunge\/\">crash<\/a>, also known as Black Thursday. However, the <a href=\"https:\/\/alternative.me\/crypto\/fear-and-greed-index\/\">Crypto Fear and Greed Index<\/a> <a href=\"https:\/\/cryptoslate.com\/analysts-believe-bitcoin-may-see-months-of-consolidation-despite-investors-extreme-fear\/\">continues<\/a> sensing \u201cextreme fear\u201d among market participants.<\/p>\n<p>Many investors and crypto enthusiasts are still concerned about a possible retracement that could see the flagship cryptocurrency plunge below $7,000 again.<\/p>\n<p><a href=\"https:\/\/twitter.com\/CryptoPatel\">Patel Sahab<\/a>, for instance, <a href=\"https:\/\/twitter.com\/CryptoPatel\/status\/1248114946774192128?s=20\">maintains<\/a> that the $7,450 resistance level was able to hold and prevent Bitcoin from a further advance. This rejection resulted in the invalidation of an inverse head-and-shoulders pattern that was forming on BTC\u2019s 30-min chart.<\/p>\n<p>Now, the technical analyst expects a bearish impulse that could see the pioneer cryptocurrency dropping to $6,800 or lower.<\/p>\n<figure style=\"width: 1440px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"css-9pa8cd\" src=\"https:\/\/pbs.twimg.com\/media\/EVIxc76VAAA2dXj?format=jpg&name=large\" alt=\"Bitcoin US dollar price chart \" width=\"1440\" height=\"900\" \/><figcaption class=\"wp-caption-text\">BTC\/USD by <a href=\"https:\/\/twitter.com\/CryptoPatel\/status\/1248114946774192128?s=20\">Patel Sahab<\/a><\/figcaption><\/figure>\n<h2>Bitcoin shows signs of recovery<\/h2>\n<p>Despite the uncertainty in the market, on-chain fundamentals reveal that Bitcoin\u2019s trading activity is back to normal. Data from <a href=\"https:\/\/cryptoslate.com\/companies\/glassnode\/\">Glassnode<\/a> shows that after the recent crash there were a smaller number of large transactions, but the trend has been reversing as a larger number of smaller transactions are hitting the network.<\/p>\n<p>The on-chain data and intelligence firm <a href=\"https:\/\/insights.glassnode.com\/the-week-on-chain-2-apr-2020\/\">explained<\/a>:<\/p>\n<blockquote><p>\u201cThe increase in active addresses and entities also indicates more widespread network use, as opposed to the smaller numbers of big movers that were active during the capitulation phase following last month's price drop. This return to normal network activity suggests that the panic triggered by the crash may have subsided, providing room for recovery.\u201d<\/p><\/blockquote>\n<figure id=\"attachment_130212\" aria-describedby=\"caption-attachment-130212\" style=\"width: 1024px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-130212 size-large\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/04\/Screenshot-2020-04-09-at-15.36.10-1024x465.png\" alt=\"Bitcoin Addresses Statistics by Glassnode\" width=\"1024\" height=\"465\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/04\/Screenshot-2020-04-09-at-15.36.10-1024x465.png 1024w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/04\/Screenshot-2020-04-09-at-15.36.10-300x136.png 300w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/04\/Screenshot-2020-04-09-at-15.36.10-768x349.png 768w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/04\/Screenshot-2020-04-09-at-15.36.10-1536x698.png 1536w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/04\/Screenshot-2020-04-09-at-15.36.10-2048x931.png 2048w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption id=\"caption-attachment-130212\" class=\"wp-caption-text\">Bitcoin Addresses Statistics by <a href=\"https:\/\/cryptoslate.com\/companies\/glassnode\/\">Glassnode<\/a><\/figcaption><\/figure>\n<p>Additionally, multiple indexes have been signaling a potential shift in the market sentiment suggesting that the bellwether cryptocurrency hit bottom, according to Glassnode.<\/p>\n<p>The Net Unrealized Profit\/Loss indicator, for example, fell into the \u201cred\u201d or \u201ccapitulation\u201d zone, which usually occurs when the market reaches a cyclical bottom. Meanwhile, the value of MVRV-Z Score plunged below zero in mid-March for the first time in over a year signaling that BTC was undervalued.<\/p>\n<figure style=\"width: 2330px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"kg-image\" src=\"https:\/\/insights.glassnode.com\/content\/images\/2020\/04\/screencapture-studio-glassnode-dashboards-btc-market-tops-bottoms-2020-04-02-12_01_08.png\" alt=\"Bitcoin's Market Top\/Bottoms by Glassnode\" width=\"2330\" height=\"2028\" \/><figcaption class=\"wp-caption-text\">Bitcoin's Market Top\/Bottoms by <a href=\"https:\/\/cryptoslate.com\/companies\/glassnode\/\">Glassnode<\/a><\/figcaption><\/figure>\n<p>Even though these indicators have been extremely accurate at predicting market bottoms in the past, only time will tell whether or not history will repeat itself.<\/p>\n<p>The current state of commotion in the global financial markets due to the spread of <a href=\"https:\/\/cryptoslate.com\/bitcoin-tumbles-in-tandem-with-global-market-after-trump-coronavirus-address-here-are-the-levels-to-watch\/\">coronavirus<\/a> has seen a significant number of investors <a href=\"https:\/\/cryptoslate.com\/investors-rush-to-safe-havens-while-bitcoin-fails-to-meet-expectations\/\">rush<\/a> to safe haven assets to protect their capital. The fly to safety could intensify if the financial turmoil deepens subsequently impacting Bitcoin\u2019s price.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Regardless of the global economic meltdown, several on-chain metrics estimate that Bitcoin reached a market bottom and could be ready to resume its historic uptrend. Fear reigns the market Over the past few weeks, Bitcoin has been able to recover most of the losses incurred during the Mar. 12 crash, also known as Black Thursday. [&hellip;]<\/p>\n","protected":false},"author":148,"featured_media":130326,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[120,61714,15323],"tags":[60786],"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>These critical on-chain metrics reveal that Bitcoin hit bottom<\/title>\n<meta name=\"description\" content=\"Regardless of the global economic meltdown, on-chain metrics estimate that Bitcoin reached a market bottom and could soon resume its historic uptrend.\u00a0\" \/>\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\/these-critical-on-chain-metrics-reveal-that-bitcoin-hit-bottom\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"These critical on-chain metrics reveal that Bitcoin hit bottom\" \/>\n<meta property=\"og:description\" content=\"Regardless of the global economic meltdown, on-chain metrics estimate that Bitcoin reached a market bottom and could soon resume its historic uptrend.\u00a0\" \/>\n<meta property=\"og:url\" content=\"https:\/\/cryptoslate.com\/these-critical-on-chain-metrics-reveal-that-bitcoin-hit-bottom\/\" \/>\n<meta property=\"og:site_name\" content=\"CryptoSlate\" \/>\n<meta property=\"article:published_time\" content=\"2020-04-10T13:00:29+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2020-04-25T08:29:54+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/04\/bitcoin-bottom.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=\"Ali Martinez\" \/>\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=\"Ali Martinez\" \/>\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\/these-critical-on-chain-metrics-reveal-that-bitcoin-hit-bottom\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/cryptoslate.com\/these-critical-on-chain-metrics-reveal-that-bitcoin-hit-bottom\/\"},\"author\":{\"@type\":\"Person\",\"@id\":\"https:\/\/cryptoslate.com\/author\/ali-martinez\/#person\",\"name\":\"Ali Martinez\",\"url\":\"https:\/\/cryptoslate.com\/author\/ali-martinez\/\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/cryptoslate.com\/author\/ali-martinez\/\"},\"image\":{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/cryptoslate.com\/author\/ali-martinez\/#authorimage\",\"url\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2019\/04\/victor-charles-profile-e1555981456737-300x300.jpg\",\"contentUrl\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2019\/04\/victor-charles-profile-e1555981456737-300x300.jpg\",\"caption\":\"Ali Martinez\"},\"jobTitle\":\"Analyst\",\"description\":\"Ali came across Bitcoin\u2019s whitepaper in 2014. 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Martinez","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/cryptoslate.com\/#\/schema\/person\/image\/","url":"https:\/\/cryptoslate.com\/wp-content\/uploads\/2019\/04\/victor-charles-profile-e1555981456737-150x150.jpg","contentUrl":"https:\/\/cryptoslate.com\/wp-content\/uploads\/2019\/04\/victor-charles-profile-e1555981456737-150x150.jpg","caption":"Ali Martinez"},"description":"Ali came across Bitcoin\u2019s whitepaper in 2014. He was so fascinated by the idea of a decentralized, borderless, and censorship-resistant currency that he started accumulating BTC since then. Ali has been working as a content writer for some of the leading media outlets in the cryptocurrency industry.","url":"https:\/\/cryptoslate.com\/author\/ali-martinez\/"}]}},"_links":{"self":[{"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/posts\/130211"}],"collection":[{"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/users\/148"}],"replies":[{"embeddable":true,"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/comments?post=130211"}],"version-history":[{"count":6,"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/posts\/130211\/revisions"}],"predecessor-version":[{"id":130342,"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/posts\/130211\/revisions\/130342"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/media\/130326"}],"wp:attachment":[{"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/media?parent=130211"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/categories?post=130211"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/tags?post=130211"},{"taxonomy":"post_folder","embeddable":true,"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/post_folder?post=130211"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}