Bitcoin Onchain Analysis 10.06.2023

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 with a cost of $26493-$27975 on Onchain seem to be making high losses. The profits of users with a cost of $24200-$25685 has decreased. The larger the red spheres and the smaller the green spheres, the higher the chance of ascension. The larger the green spheres and the smaller the red spheres, the higher the probability of a drop. The level ranges where the spheres are located can work as strong support or strong resistance. Bitcoin seems to be close to the reaction bullish in the short term.

ASOPR data mostly showed a performance of 1 level and above in bull seasons and 1 level and below in bear seasons. In Bitcoin bull season, this data should hold above 1 level.

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 $48480The support band price is $20200.

According to the data in this chart, Bitcoin moved to orange after holding on to the burgundy and purple bands. As the orange band held on, the bull season was experienced and progress to the turquoise band was seen. Today’s orange band support is $20200. This value also refers to the real value of Bitcoin as the “Realized Price”.

According to the Pi Cycle Top Indicator data, Bitcoin was trying to hold on to the $26400-$26600 band, which was a very strong support. The current orange band price value is $26800 which is strong resistance now. We mentioned that if there is a daily or weekly closing below the orange band, the decline may deepen and this happened. Bitcoin should rise above the 26820 level again as soon as possible. Every day it stays under the orange band, the declines are in danger of getting deeper.

The level that Bitcoin must hold to maintain its bullish structure was $25850. When Bitcoin lost this strong support, decline got deeper. It is expected to exceed the $39960 level in order to make even more sharp rises. If there is a deep bear season again, the level to watch is now $12920.

NVT Golden Cross indicator advanced to the main support zone as the decline deepens. We can’t say for sure how long it will stay in this region, but strong supports close to the price must be followed.

You can check out our Onchain Data and Explanationarticle.

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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