Profit, Loss Supply Metrics Predict Bitcoin Price

On November 10, 2021, bitcoin hit its all-time high price of $69,000, per the Bitstamp exchange rate.

It is truly an incredible event that BTC was able to climb so high, increasing the asset’s total market capitalization to $3 trillion, according to CoinGecko. But not so long ago, in June and July of this year, the situation didn’t look so rosy. BTC was relatively weak, at least such an impression could have formed for many, and at some point, it even seemed that BTC could test the lower levels of $12,000 to $16,000.

And there were some other developments that may have made investors nervous at this time, like the claims of Chinese regulators, close attention from the U.S. regulators, the propensity of retail investors to continue panic selling, and so on.

But what the first cryptocurrency has taught us for sure is that price is difficult to predict. So, what should we be guided by? There are many great trading strategies out there, but today I propose analyzing bitcoin using on-chain supply metrics.

In my opinion, the supply metrics have performed well in the current rally, and I think they will continue to generate valuable signals for us, which are suitable for analysis.

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