Bitcoin Onchain Analysis 13.05.2023

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 $27572-$29190 seem to be at a loss on onchain. 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 drop. The level ranges where the orbs are located can work as strong support or strong resistance.

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 $48251The support band price is $20105.

The Active Address Sentiment Indicator data seems to have dropped from the mid-band resistance area and approached the main support area. No single data is sufficient, but strong price support zones can be followed with this data for purchase.

According to Pi Cycle Top Indicator data, bitcoin received a strong reaction from the $25700-$25800 region (from the orange band). In the daily or weekly closings under the orange band, the decline may deepen. We will be following.

The level that Bitcoin must hold to maintain its bullish structure is $24562. It is expected to exceed the $37960 level in order to make even more sharp rises. If there is a deep bear season again, the level to watch is now $12281.

In Bitcoin, profitability for miners is a function of Bitcoin price and the miner’s cost of purchasing electricity to mine. Some miners hold a large number of Bitcoins to sell in the bull market and make much more profit or to survive the bear season. However, in a bearish scenario, miners who cannot earn much and have to sell their Bitcoins have to stop their mining activities. Miners who holding Bitcoins may want to sell their Bitcoins at a loss to force other miners to leave the network. However, this could lead to what is called a “death spiral” in Bitcoin. A death spiral is a steady decline in price. Of course, the price will turn upside down at some point, but in the process, many miners stop mining.

The NVT Golden Cross data appears to have come to the main support zone, falling from its late-April levels. Here is a traceable data to buy based on its persistence.

You can check out our Onchain Data and Explanations article.

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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