{"id":140261,"date":"2020-07-27T08:00:07","date_gmt":"2020-07-27T07:00:07","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=140261"},"modified":"2020-07-27T21:46:18","modified_gmt":"2020-07-27T20:46:18","slug":"this-on-chain-metric-suggests-bitcoins-next-big-rally-may-just-be-getting-started","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/this-on-chain-metric-suggests-bitcoins-next-big-rally-may-just-be-getting-started\/","title":{"rendered":"This on-chain metric suggests Bitcoin&#8217;s next big rally may just be getting started"},"content":{"rendered":"<p>After a prolonged period of sideways trading, Bitcoin\u2019s volatility is starting to return to normal levels, with the cryptocurrency now venturing towards the top of its macro trading range.<\/p>\n<p>Overnight, buyers were able to send BTC\u2019s price flying past the five-figure price region, although it faced a firm rejection at $10,200 that caused its price to slide back below $10,000.<\/p>\n<p>Throughout 2020, Bitcoin has broken above $10,000 on countless occasions, with each one proving to be fleeting and followed by further downside.<\/p>\n<p>One indicator is showing that this time may be different.<\/p>\n<p>A \u00a0measurement of on-chain economic activity suggests that long-term investors aren\u2019t selling at the moment \u2013 unlike previous breaks above this crucial psychological price level.<\/p>\n<h2><strong>Bitcoin\u2019s volatility returns as bulls battle for control of $10,000<\/strong><\/h2>\n<p>Just one week ago, <a href=\"https:\/\/cryptoslate.com\/coins\/bitcoin\/\">Bitcoin<\/a> was caught within its tight multi-week consolidation channel between $9,100 and $9,300.<\/p>\n<p>This trading range formed as a result of low liquidity and trading volume that had plagued the benchmark cryptocurrency, which came about as a result of investors placing an increased focus on altcoins.<\/p>\n<p>Over the past few days, however, this trend has started shifting, with BTC breaking out of this trading range and rallying to highs of $10,200 that were set overnight.<\/p>\n<p>The visit to these highs was fleeting and was quickly followed by a sharp selloff that led it to lows of $9,800.<\/p>\n<figure id=\"attachment_140263\" aria-describedby=\"caption-attachment-140263\" style=\"width: 1024px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"size-large wp-image-140263\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/07\/TV-1024x555.png\" alt=\"Bitcoin\" width=\"1024\" height=\"555\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/07\/TV-1024x555.png 1024w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/07\/TV-300x163.png 300w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/07\/TV-768x417.png 768w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/07\/TV-1536x833.png 1536w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/07\/TV-2048x1111.png 2048w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption id=\"caption-attachment-140263\" class=\"wp-caption-text\">Chart via TradingView<\/figcaption><\/figure>\n<p>Now, buyers are once again attempting to propel the cryptocurrency past the massive resistance that sits at $10,000.<\/p>\n<h2><strong>Here\u2019s why this rally to $10,000 is different from past ones<\/strong><\/h2>\n<p><a href=\"https:\/\/cryptoslate.com\/new-glassnode-metric-calculates-profit-loss-for-moved-bitcoin-whales-seen-stacking-up-on-btc\/\">Bitcoin<\/a> has visited the five-figure price region on many occasions over the past few months, with each one resulting in a swift rejection and subsequent downtrend.<\/p>\n<p>This time may be different, however, as one on-chain indicator is flashing a positive sign for the benchmark digital asset.<\/p>\n<p>According to <a href=\"https:\/\/cryptoslate.com\/companies\/glassnode\/\">Glassnode\u2019s<\/a> \u201c<a href=\"https:\/\/academy.glassnode.com\/indicators\/coin-days-destroyed\/cdd-coin-days-destroyed\">Coin Days Destroyed<\/a>\u201d indicator, during past rallies to $10,000, investors offloaded a significant amount of \u201cold Bitcoin\u201d that had previously sat dormant within their wallets.<\/p>\n<p>This time, however, the CDD indicator shows that investors are not selling their \u201cold\u201d Bitcoin. The analytics firm explained this in <a href=\"https:\/\/twitter.com\/glassnode\/status\/1287411639503990785\">a recent post<\/a>:<\/p>\n<blockquote><p>\u201cIn contrast to the last two times BTC hit $10,000 USD, we haven't seen an increase in Bitcoin Days Destroyed today.\u201d<\/p><\/blockquote>\n<figure id=\"attachment_140262\" aria-describedby=\"caption-attachment-140262\" style=\"width: 1024px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"size-large wp-image-140262\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/07\/Glassnode-2-1024x574.png\" alt=\"\" width=\"1024\" height=\"574\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/07\/Glassnode-2-1024x574.png 1024w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/07\/Glassnode-2-300x168.png 300w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/07\/Glassnode-2-768x431.png 768w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/07\/Glassnode-2-1536x861.png 1536w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/07\/Glassnode-2-2048x1148.png 2048w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption id=\"caption-attachment-140262\" class=\"wp-caption-text\">Data Source: Glassnode<\/figcaption><\/figure>\n<p>The reason why investors may not be selling their long-term holdings during this latest movement is due to a shift seen in the entire crypto market, as many altcoins are showing immense signs of strength.<\/p>\n<p>This market-wide uptrend has also boosted investor sentiment, causing many to call for an imminent uptrend.<\/p>\n<p>Because investors aren't selling into this latest rally, the ongoing uptrend may prove to be far more sustainable than those seen in previous months.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>After a prolonged period of sideways trading, Bitcoin\u2019s volatility is starting to return to normal levels, with the cryptocurrency now venturing towards the top of its macro trading range. Overnight, buyers were able to send BTC\u2019s price flying past the five-figure price region, although it faced a firm rejection at $10,200 that caused its price [&hellip;]<\/p>\n","protected":false},"author":174,"featured_media":140285,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[120,15323],"tags":[60786,63036],"prediction_market_topic":[],"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>This on-chain metric suggests Bitcoin&#039;s next big rally may just be getting started<\/title>\n<meta name=\"description\" content=\"On-chain economic activity shows that long-term investors aren\u2019t selling their Bitcoin at the moment, unlike during past moves to $10k.\" \/>\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\/this-on-chain-metric-suggests-bitcoins-next-big-rally-may-just-be-getting-started\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"This on-chain metric suggests Bitcoin&#039;s next big rally may just be getting started\" \/>\n<meta property=\"og:description\" content=\"On-chain economic activity shows that long-term investors aren\u2019t selling their Bitcoin at the moment, unlike during past moves to $10k.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/cryptoslate.com\/this-on-chain-metric-suggests-bitcoins-next-big-rally-may-just-be-getting-started\/\" \/>\n<meta property=\"og:site_name\" content=\"CryptoSlate\" \/>\n<meta property=\"article:published_time\" content=\"2020-07-27T07:00:07+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2020-07-27T20:46:18+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/07\/bitcoin-rally.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=\"Cole Petersen\" \/>\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=\"Cole Petersen\" \/>\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\/this-on-chain-metric-suggests-bitcoins-next-big-rally-may-just-be-getting-started\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/cryptoslate.com\/this-on-chain-metric-suggests-bitcoins-next-big-rally-may-just-be-getting-started\/\"},\"author\":{\"@type\":\"Person\",\"@id\":\"https:\/\/cryptoslate.com\/author\/cole-petersen\/#person\",\"name\":\"Cole Petersen\",\"url\":\"https:\/\/cryptoslate.com\/author\/cole-petersen\/\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/cryptoslate.com\/author\/cole-petersen\/\"},\"image\":{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/cryptoslate.com\/author\/cole-petersen\/#authorimage\",\"url\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2019\/11\/author-cole-petersen.jpg\",\"contentUrl\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2019\/11\/author-cole-petersen.jpg\",\"caption\":\"Cole Petersen\"},\"jobTitle\":\"Journalist\",\"description\":\"Cole is a freelance journalist and university student studying philosophy. 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He owns a non-life-changing sum of Bitcoin and enjoys day trading.","url":"https:\/\/cryptoslate.com\/author\/cole-petersen\/"}]}},"_links":{"self":[{"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/posts\/140261"}],"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\/174"}],"replies":[{"embeddable":true,"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/comments?post=140261"}],"version-history":[{"count":3,"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/posts\/140261\/revisions"}],"predecessor-version":[{"id":140362,"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/posts\/140261\/revisions\/140362"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/media\/140285"}],"wp:attachment":[{"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/media?parent=140261"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/categories?post=140261"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/tags?post=140261"},{"taxonomy":"prediction_market_topic","embeddable":true,"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/prediction_market_topic?post=140261"},{"taxonomy":"post_folder","embeddable":true,"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/post_folder?post=140261"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}