Bitcoin’s Next Big Move? CryptoQuant Says These Alerts Are To Watch

Keshav Verma

3 weeks ago

2 mins read

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Created by industry experts and meticulously reviewed

The highest standards in reporting and publishing

How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

On-chain analytics firm CryptoQuant has revealed the five key Bitcoin on-chain alerts that could be to keep an eye on in the coming week.

Bitcoin Is Observing Developments On These Metrics

In a new thread on X, CryptoQuant has discussed about some Bitcoin on-chain alerts that could be to watch amid the consolidation phase in the cryptocurrency’s price.

The first indicator shared by the analytics firm is the 60-day change in the market cap of USDT, the number one stablecoin.

USDT Supply Vs Bitcoin — Looks like the metric’s value has been positive in recent months | Source: CryptoQuant on X

As is visible in the above chart, the 60-day change in the USDT market cap has continued to sit at a notable positive level recently, implying the stablecoin has been witnessing growth.

Stablecoins are one of the main inlets of capital into the cryptocurrency sector, so growth in them can generally be a positive sign. Currently, the 60-day change in the USDT market cap has a value of $10 billion. “This is a clear sign of fresh liquidity entering the market,” notes CryptoQuant.

Another stablecoins-related indicator that can be relevant for Bitcoin is the Stablecoin Supply Ratio (SSR), which measures the ratio between the market cap of BTC and combined that of all stables.

A low value in the indicator can prove to be a bullish sign, as it implies investor purchasing power in the form of stablecoins is high compared to the Bitcoin market cap.

From the below chart, it’s apparent that the Relative Strength Index (RSI) of the BTC SSR stands at a value of 21 right now, which is considered to be inside the “buy” territory.

Bitcoin SSR — The data for the BTC SSR RSI over the last few years | Source: CryptoQuant on X

Another bullish sign that’s developing for Bitcoin is in the Accumulator Address Demand, an indicator that measures the demand that’s coming from addresses that have zero history of selling the cryptocurrency. These perennial HODLers now own 298,000 BTC, which is a new record.

A metric that’s still inside the bearish zone, however, is the Inter-Exchange Flow Pulse (IFP). This metric keeps track of the BTC flows happening between spot and derivatives exchanges.

Bitcoin IFP — The BTC IFP appears to have been heading down for a while now | Source: CryptoQuant on X

The indicator has been following a downtrend during the past few months, which is considered to be a bear market pattern. “Watch closely: a shift upward often marks the start of bullish momentum,” says the analytics firm.

The final metric shared by CryptoQuant is the Realized Price of the short-term holders (STHs), which measures the average cost basis of the Bitcoin investors who got in during the last 155 days.

During BTC’s recent plunge, the STHs briefly dipped into losses, but the asset has since recovered above their Realized Price of $109,775. Bullish trends have historically continued when the coin has traded above this level.

BTC Price

Bitcoin has climbed back to $114,200 following its recovery surge in the last couple of days.

Bitcoin Price Chart — The trend in the BTC price over the last five days | Source: BTCUSDT on TradingView

Featured image from Dall-E, CryptoQuant.com, chart from TradingView.com

Keshav Verma

Keshav is currently a senior writer at NewsBTC and has been attached to the website since June 14, 2021.

Keshav has been writing for many years, first as a hobbyist and later as a freelancer. He has experience working in a variety of niches, even fiction at one point, but the cryptocurrency industry has been the longest he has been attached to.

In terms of official educational qualifications, Keshav holds a bachelor’s degree in Physics from one of the premier institutes of India, the University of Delhi (DU). He started the degree with an aim of eventually making a career in Physics, but the onset of COVID led to a shift in plans. The virus meant that the college classes had to be delivered in the online-mode and with it came free time for him to explore other passions.

Initially only seeking to make some beer money, Keshav unexpectedly landed clients offering real projects, after which there was no looking back. Writing was something he had always enjoyed and to be able to do it for a living was like a dream come true.

Keshav completed his Physics degree in 2022 and has been focusing on his writing career since, but that doesn’t mean his passion for Physics has ended. He eventually plans to re-enter university to obtain a masters degree in the same field, but perhaps only to satiate his own interest rather than for using it as a means to find employment..

Keshav has found blockchain and its concepts fascinating ever since he started going down the rabbit-hole back in 2020. On-chain analysis in particular has been something he likes to research more about, which is why his NewsBTC pieces tend to involve it in some form.

Being of the science background, Keshav likes if concepts are clear and consistent, so he generally explains the indicators he talks about in a bit of detail so that the readers can perhaps come out having understood and learnt something new.

As for hobbies, Keshav is super into football, anime, and videogames. He enjoys football not only as a watcher, but also as a player. For games, Keshav generally tends towards enjoying singleplayer adventures, with EA FC (formerly FIFA) being the only online game he is active in. Though, perhaps due to being ultra-focused on the game, he is today a semi-pro on the EA FC scene, regularly participating in tournaments and sometimes even taking back prize money.

Because of his enthusiasm for anime and games, he also self-learned Japanese along the way to consume some of the untranslated gems out there. The skill didn’t merely remain as just a hobby, either, as he put it to productive use during his exploration for small-time gigs at the start of COVID, fulfilling a couple of Japanese-to-English translation jobs.

Keshav is also big into fitness, with agility and acceleration-related workouts making a big part of his program due to the relevance they have in football. On top of that, he also has a more traditional strength based program for the gym, which he does to maintain an overall fitness level of his body.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.