A crypto trader says that a couple of on-chain signals are suggesting that Bitcoin (BTC) is gathering bullish momentum under the hood.
Trader Ali Martinez says hundreds of thousands of new Bitcoin wallets were created on Sunday as BTC touched $35,000.
“Bitcoin: more than 700,000 new BTC addresses created [on Sunday] alone. This is an important milestone, as BTC network growth is [one of] the best price predictors!
The analyst also says that Bitcoin’s current price is now above the cost basis of long-term BTC holders – an on-chain metric that tracks the average acquisition price of all coins held for over six months. According to Martinez, the on-chain signal has historically preceded big Bitcoin bull rallies.
“Bitcoin recently crossed over the six-month to three-year holder cost basis at $34,150!
If BTC maintains above this level, those holders previously underwater may be back in profit. This could signal a shift to a bullish market sentiment!
Notice that the last three times BTC surpassed the six-month to three-year holder cost basis, it underwent a 4,778%, 99%, and 787% bull run, respectively.”
At time of writing, Bitcoin is worth $34,922.
Lastly, Martinez is keeping a close watch on the amount of capital that’s flowing into digital assets. According to the analyst, crypto witnessed inflows to the tune of billions of dollars over a 30-day period.
“A lot of capital is flowing into crypto right now, signaling strong investor confidence.
In fact, we spotted nearly $10.97 billion in positive capital inflows, the highest level in 2023!”
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