Hold onto your hats, crypto enthusiasts! Bitcoin (BTC) is on a roll, having jumped a solid 7.5% in just a week, thanks to the Federal Reserve slashing its interest rate by 50 basis points. This move has set the stage for a potential BTC boom, and the on-chain data is backing it up.
Our undercover crypto analyst, Avocado, dropped some juicy insights, suggesting that Bitcoin might just be gearing up for a long-term rally. According to Avocado, several on-chain support levels are flashing green, hinting that BTC is still cruising through its bull season.
One key metric to watch is the seven-day Simple Moving Average (SMA) of Bitcoin’s Fund Flow Ratio. This metric, which has dipped to 0.05, indicates that investors are back in action on the exchanges. Historically, when this ratio stops its decline and starts to rebound, it's a sign that good times are ahead, often signaling the end of a bear market or the beginning of a bull run.
Then there's the 30-day SMA of Bitcoin’s Estimated Leverage Ratio, showing signs of life and forming a crucial support range between 0.15 and 0.175. Avocado believes that with futures ETFs gaining traction since 2021 and recent positive news around Bitcoin options trading, this metric is set to become even more influential.
Another metric Avocado pointed out is the 30-day Exponential Moving Average (EMA) of Bitcoin’s Binary Coin Days Destroyed (CDD). Hovering between 0.1 and 0.3, this metric suggests that long-term holders are stocking up on BTC. When this value spikes, it's often a signal that the bull market might be cooling off, but for now, it’s all systems go!
So, what’s the buzz all about? The Federal Reserve's interest rate cut has pumped more cash into the U.S. economy, leading to a flurry of activity in Bitcoin’s futures and perpetual markets. This has caused a spike in open interest, pushing BTC’s value higher.
At the time of writing, Bitcoin is sitting pretty at $63,500, with a slight uptick in the last 24 hours. Buckle up, because it looks like Bitcoin’s wild ride is far from over!
