A common rule amongst fishermen is that guppies and goldfish can never mix.
This article utilizes on-chain metrics to gain perspective on the current cryptocurrency market. Although market sentiment and the technicals hint at bullish potential, the on-chain metrics are beginning to paint an entirely different narrative.
Bitcoin price has a decision to make
Bitcoin price currently auctions at $19,743 as the Volume Profile Indicator shows a significant uptick in transactions while BTC price remains stagnant. The mundane market movement comes after Bitcoin lost 20% of its market value last month.
The bears successfully breached the 200-week moving average (WMA) and caused bulls to jump ship near the psychological $20,000 level. The breach has enticed retail traders to join the bears calling for the liquidation of summertime's lowest Bitcoin price at $17,622.
On-Chain Metrics
Underneath the hood, the Bitcoin price shows a confounding piece of evidence for day trading bears. CryptoQuant's Bitcoin Miners' Position Index shows a significant uptick in the miners' deposits to exchanges. On September 1, the indicator was nearly 10x compared to its average fluctuating range.
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