Bitcoin has recently rebounded, recovering from August's losses, and surged nearly 10% over the past two weeks. At one point, it hit a 24-hour high of $66,000, before slightly retracing to $63,508. Axel Adler Jr, an analyst from CryptoQuant, believes this might be the precursor to a bigger rally, based on key on-chain indicators.
One of the primary indicators Adler focuses on is the 'Exchange Flow Multiple,' which measures the ratio between short-term and long-term Bitcoin inflows and outflows on exchanges. When this multiple declines, it suggests decreased short-term volatility, indicating potential bullish momentum.
Adler attributes the decline in the Exchange Flow Multiple to two main factors. First, long-term holders, or 'HODLers,' are retaining their assets, anticipating future price increases. Second, the market typically needs time to stabilize after significant drops in Bitcoin’s price, leading to decreased exchange activity as investors wait for a clearer price direction.
The analyst also draws parallels to similar patterns seen in 2023's bull market, where low levels of the indicator preceded major market uptrends. If history repeats, the current scenario might set the stage for the next big upward movement in Bitcoin’s price.
Kaynak: www.newsbtc.com ↗