On-chain metrics point to market recovery potential

News, forecasts and analysis of the cryptocurrency market
News, forecasts and analysis of the cryptocurrency market

On-chain indicators indicate an improvement in market sentiment and the potential for further growth in the price of bitcoin, according to an analytical report by CryptoNewsHerald.

In particular, this is indicated by the MVRV Z-Score indicator, which has recently left the “green zone” of oversold.

Dynamics of the MVRV Z-Score indicator. Data: Look Into Bitcoin.

The aSOPR indicator stayed above the 1 mark for most of February. This indicates an improvement in market sentiment and profit taking by many investors.

Dynamics of the aSOPR indicator. Data: Glassnode.

The number of addresses with a balance of 1,000 BTC or more (over $23.7 million) has dropped to mid-2019 levels. As of February 28, 2023, the number of “whale” addresses is 2006. A comparable figure – 2005 – was recorded on July 30, 2019.

The number of addresses in this category peaked in February 2021 near the level of 2500. Then, despite the rally of digital gold to an all-time high at $69,000, the figure began to decline.

For relatively small addresses (>0.1 BTC, >0.1 BTC and >1 BTC), the situation is more optimistic – these categories almost never saw a decline. This indicates a gradual increase in the number of crypto investors and their desire to accumulate as much digital gold as possible, despite the volatility and changing market cycles.

Earlier, Glassnode analysts concluded that Bitcoin has recovered from the effects of the FTX collapse.

Recall that Adam Farthing from B2C2 expressed the opinion that in order to continue the rally of the first cryptocurrency, it is necessary to overcome the $25,000 mark.

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