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Breaking News: Bitcoin, XRP, Ethereum Dip Post Fed's Rate Cut: What’s Next For Crypto?
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Breaking News: Bitcoin, XRP, Ethereum Dip Post Fed's Rate Cut: What’s Next For Crypto?

As Bitcoin Breaks $50k, Indicators Show A Calm Before The Storm

Keshav Verma
Keshav Verma
Last Updated: June 11, 2024 1:58 pm
3 mins read
Bitcoin Bull

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As Bitcoin retests the $50k price level, on-chain indicators seem to be aligned so that they suggest the coin might explode upwards soon.

Bitcoin Indicators May Be Showing A Calm Before The Storm

As pointed out by a CryptoQuant post, Bitcoin indicators seem to be showing some interesting values right now. Some of these even look similar to the build up to the late 2020/early 2021 rally that lead to the all-time-high (ATH).

Here is a quick explanation (along with the data) of the three relevant metrics the chart talks about:

The transactions count indicator shows the average number of transactions happening per block on the Bitcoin network. The below chart showcases how its value has changed recently:

Bitcoin Transactions Count

The BTC transactions count seems to be going up | Source: Blockchain.com

As the above graph shows, the value of the metric has shot up recently. This is usually a positive sign for an upside.

Related Reading | Mid-Cap Altcoins Crushed Bitcoin And Ethereum In August

The second metric, the mean tokens transferred, shows the average amount of coins transferred on the BTC chain. And the last one, the transaction fees, is pretty self-explanatory. Here is a chart explaining the trends in these indicators:

Bitcoin Indicators

The various Bitcoin chain metrics | Source: CryptoQuant 

Looking at the graph, two things appear clear. The mean tokens transferred indicator hit a new ATH of 31 BTC recently. While the transaction fees seems to have gone down and flattened in the past couple of months.

Related Reading | Why So Bearish? Fidelity Suggests Bitcoin Price Could Rise To $100 Million

Also, as the chart shows, these two trends look similar to how they did during the lead up to the bull rally that helped BTC make a new ATH.

If there is any pattern here, it looks like this might be the calm before the storm as Bitcoin could make large moves upwards soon. The fact that the crypto has shot up and broken $50k quickly might already support this.

BTC Price

At the time of writing, Bitcoin’s price is around $50k, up 6% in the last 7 days. Monthly gains for the cryptocurrency are around 30%.

Here is a chart that shows how the value of the coin has changed over the last three months:

Bitcoin Price Chart

BTC's price gains sudden upwards trend | Source: BTCUSD on TradingView

Over the past few days, it looked as though Bitcoin’s downtrend would continue for a while at least, but today the coin’s price sharply spiked up as it finally retested $50k again.

It remains to be seen if the crypto can keep the momentum up, but if the above indicators are anything to go by, signs seem to be bullish for BTC in the long term.

Featured image from Unsplash.com, charts from TradingView.com, CryptoQuant.com, Blockchain.com
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Keshav Verma
Keshav Verma

Keshav Verma

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

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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.

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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.

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