Bitcoin On-Chain Data Suggests Current Price Range Is a Buy

Recent events surrounding the rapid spread of COVID-19 to nearly every country on Earth and major markets reaction to the phenomena have crypto investors scratching their heads in bewilderment as the sector has never endured a global financial markets meltdown.

The fact that Bitcoin (BTC) was born from a financial crisis but has yet to experience one raises the fear that the asset may perform poorly as traditional markets across the globe crumble.

These fears are clearly weighing on investor sentiment and with the May 2020 halving event fast approaching many are wondering if the long-expected bull market, supposedly a byproduct of the Bitcoin halving, will be negatively impacted by the current downturn in traditional markets.

Bitcoin On-Chain Data Suggests Current Price Range Is a Buy

Bullish investors relying on traditional technical analysis to assess Bitcoin’s price action will find the asset’s current performance less than satisfactory and the digital asset’s constant struggle to reach $10,000 is leading some to question whether or not the cryptocurrency will meet investors high expectations with the halving event just 64 days away.

Since 2018 crypto traders looking for an edge have become increasingly interested in how the activity within the Bitcoin network can be analyzed to provide insight into its price action on spot and derivatives markets.

Blockchain analytics firm glassnode recently published a thorough analysis examining how on-chain data allows one to categorize market participants into distinct “meaningful actor groups.”

According to glassnode co-founder Rafael Schultze-Kraft:

“Bitcoin’s UTXO–based system allows for analyses of on-chain data based on the ‘age’ of Bitcoins in the network, i.e. the categorization of Bitcoins depending on the last time they moved.” Read More...