Bitcoin posted an impressive weekly growth of 35.8% thanks to emergency measures by leading central banks after undermining confidence in banks. Digital gold has formed a structure reminiscent of early bull markets, Glassnode stressed.
#Bitcoin has out-performed this week, rallying 35.8% against a backdrop of challenging conditions for the traditional financial system.
This week, we explore how #Bitcoin appears to be shifting up a gear, and rallying out of deep bear market territory.https://t.co/Xs5mtaAhqB
— glassnode (@glassnode) March 20, 2023
Since 2015, there have been only 16 days in which the weekly growth rate of the first cryptocurrency exceeded the result achieved in the previous week, experts calculated.
Against the background of stress in the traditional financial system and the subsequent injection of liquidity from the side of central banks, the values of on-chain indicators have moved out of the zone of deep bear markets.
The daily number of transactions (monthly average) has risen to 309,500, the highest since April 2021, well above the annual average.
Based on clustering algorithms, experts assessed the dynamics of unique addresses created per day. Last week, the figure hit 122,000. According to their estimates, only 10.2% of the days since the formation of the genesis block, it was higher – mainly at the peak of 2017 and during the bull market of 2020-2021.
The growing load on the network has led to an increase in network fees, which are associated with new waves of Bitcoin adoption in the form of a growing demand for block space.
The daily income of miners increased to $22.6 million, the highest since June 2022, the metric surpassed the annual average. Similar patterns of activity in the past, as a rule, were observed near the points of transition to a more constructive market, the experts emphasized.
The MVRV indicator reached 1.36. It approached the average for the entire history of the network (1.82), bouncing up from the oversold zone in the form of one standard deviation (δ) down.
Historically, inside the tapes with +/- δ from the average, bitcoin spent 54% of all trading days, experts calculated. The current price above $27,000 corresponds to a value of -0.5δ. In other words, market value no longer reflects a deep discount to the historical average, they pointed out.
MVRV Momentum moved into positive territory, signaling that a significant portion of the coins were purchased below the current price. Now most investors are back in profit. Similar to the metrics above, similar shifts in the past tended to correlate with increased online activity.
The SOPR indicator also forms a structure similar to the 2018-2019 recovery period.
Last week, all variants of the metric tested the borderline level of 1 from top to bottom. This indicates a wide-ranging realized loss during the sell-off, with the price dropping to $19,800, the analysts explained. After that, aSOPR peaked since November 2021.
“Apparently the few hodlers who have weathered the increased volatility are motivated to take profits on this rally. This reflects the belief that Bitcoin will play an important role in the future of the global financial system.” experts summed it up.
Recall that in March, the founder of CryptoQuant, Ki Yoon Joo, and the analyst of rektcapital stated that digital gold is moving into a bullish phase.
Earlier, Ryan Selkis, the founder and CEO of the analytical company Messari, predicted the growth of the first cryptocurrency to $100,000 within 12 months.
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