Bitcoin Onchain Analysis 24.04.2023

Onchain analysis is the examination of data stored on the blockchain network and allows us to see what users are doing and how they behave on the blockchain. This data includes block details, transaction data, and smart contract information.

Users who buy bitcoins in the range of $27450-29055 on Onchain seem to be at high losses. The larger the red spheres and the smaller the green spheres, the higher the chance of rise. The larger the green spheres and the smaller the red spheres, the higher the probability of a decline. The level ranges where the spheres are located can work as strong support or strong resistance. At the current stage, bitcoin seems to be approaching support and reaction bullish.

The Active Address Sentiment Indicator data seems to have regressed further from the level we stated april 21. It is approaching the support zone as the decline continues.

Bitcoin has experienced a rise after its movement between the green and blue bands in the past, and then it rose up to the orange band. There is no certainty, but if the current price action is the same, today’s orange resistance is $47800. The support band price is $19920.

Bitcoin seems to have experienced a sharp decline as it failed to pass the above resistance. He needs to maintain the optimism-anxiety zone, otherwise the decline may go deeper.

In this data, the rise of Bitcoin from $15000 to $31000 seems to have performed better than in previous years. However, it doesn’t look like that for the price. Of course, this data alone is not enough, but according to this data, it seems that the bitcoin price has a long way to go down.

Bitcoin has experienced a rise by throwing itself above the orange band after the price action under the orange band in the past. In 2016-2018, the green band and the orange band rose together in parallel and the bull season was experienced. However, between 2019-2020, the Green band has been a strong resistance and bear season has been experienced. According to the current chart, the orange band support is at $24250 and the green band resistance is at $44360.

The level that Bitcoin must hold to maintain its bullish structure is $23572. It is expected to exceed the $36430 level in order to make even more sharp rises. If there is a deep bear season again, the level to watch is now $11786.

The Miner Position Index (MPI) shows how much coins miners are moving. Higher value shows that miners are sending more coins than usual which indicates possible selling. If miners send some proportion of their reserve at the same time, it could trigger a price drop. The last data value 12.58.

NVT Golden Cross seems to have come tothe risk zone again. We don’t know how long it will stay in this area, but we have to be careful. It can trigger the price decline more.

You can check out the onchain data and explanations.

Onchain analysis consist of data from blockchain markets, and only reflects bitcoin inflows and outflows to exchanges. These may be interpret both positive or negative, but does not include a certain market outlook whether bullish or bearish. All analysis shared above is for educational purposes, this post does not include any financial advice.

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