Bitcoin is showing some strong technical signals that at least a short-term recovery could be on the horizon, plus some good on-chain signals as well.
With that said, this week I will be looking at some of the strongest on-chain signals that provide an indication lift-off is not too far away.
Source: Santiment.net
Starting with Bitcoin Miners and the Supply of BTC held by Miners had been in freefall for the many months, and most notably after Bitcoin tagged $70,000.
Just recently Bitcoin miners have stopped selling according to recent on-chain data.
Source: Santiment.net
And in fact, data shows a rebound higher in this metric during recent weeks.
Next, we come to the Supply In Profit. This metric is worth watching as when BTC traders are heavily in profit it's normally a good sign to be somewhat cautious.
Source: Santiment.net
This week this metric tagged a major low, and in fact, the BTC Supply In Profit metric hit a yearly low.
What I find interesting is the fact that this metric was last this low when BTC traded at $38,000.
With the price being at roughly $20,000 higher, and this metric very low, it could speak to a major rally in the midst.
Source: Santiment.net
Another key on-chain event this week was the return of positive price flows according to Daily Active Address Activity.
This is a key bullish signal (when bars are green) and one which has previously ushered in big price movement.
Source: Santiment.net
In another rare on-chain event, Ethereum has also registered significant green bars in terms of DAA.
And finally, this week's CoT report showed that professional futures traders drastically increased their Long exposure to BTC.
Source: Tradingster.com
Conversely, Leveraged funds dramatically increased their short exposure. One of these participants is going to be wrong, and I suspect it's going to be the Leveraged futures crowd.
