Crypto analytics firm Santiment is looking at key on-chain Bitcoin (BTC) metrics and says that the top cryptocurrency could be in store for a big week.
Santiment tells its 96,700 Twitter followers that BTC is flashing signs of on-chain strength that could prelude another big move in the coming days.
“Bitcoin has seen its token circulation surging the past week. One of the most reliable indicators in crypto, the amount of unique tokens moving on BTC’s network, hit its highest week since May. If this stays high, we could be in for another big week.”
According to Santiment, token circulation shows the number of coins being used during a specific time period, offering a glimpse into the crypto asset’s health.
Santiment also notes that Bitcoin’s supply on exchanges is at its lowest level in over two years.
“With Bitcoin on the cusp of returning to $50,000 for the first time in four weeks, this comes as the percentage of supply on exchanges has now dropped to its lowest level since June 4th, 2019. The 30-month low further de-risks chance of a major sell-off.”
Looking at Ethereum (ETH), the second-largest crypto asset appears to be following Bitcoin’s footsteps as its supply in exchanges continues to dwindle.
“ETH supply on exchanges continues its downward trend as it took sharp dips over the past two weeks regardless of the price action, and is now hitting its lowest in the past six months.
Looking good so far, as it indicates that market participants are shifting to accumulate and HODL mode where possible.”
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