Bitcoin from the perspective of on-chain data

Published in

Coinmonks

3 min readMay 28, 2022

Bitcoin has been fluctuating around $ 28,000 to $ 31,000 for about 16 days, and the market seems to be in a state of indecision.

By examining on-chin data, we try to answer the question of whether there are any signs of supply or demand in the market?

Metric 1
Bitcoin inflows and outflows to exchanges last week are almost neutral, as shown by the yellow line (simple seven-day moving average)

Metric 2
In order to move Open Interest in the last ten days, the price of Bitcoin has diverged from Open Interest, and if this trend continues, it can be considered as a fuel for price growth in the coming days.

Metric 3
The Fund Holdings index has risen in recent days and it seems that digital assets holders such as trusts, ETFs, and funds have assessed the current price range as appropriate for a buy step.

Metric 4:
The Miner Reserve index has also been rising in recent days and is a sign that bitcoins are being collected by miners. It could be a sign of a better future.

Metric 5:
The NUPL index shows that the market is approaching the level of capitulation. This trend can lead to a reduction in sales pressure.

Metric 6:
The NVT Ratio has risen sharply in recent days due to a decrease in the volume of transactions. When this happens to the NVT Ratio in a downward trend in Bitcoin price, it could indicate that traders have given up and are reluctant to enter the market.

Conclusion :
In general, putting the information together, I can say that there is no strong sign of demand in the market, but it seems that the supply pressure has decreased a lot, and if the demand side is stimulated, the situation can be ready to break the resistance of 31 thousand.

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Bitcoin from the perspective of on-chain data

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Written by Masoud_Crypto