The most recent on-chain activity revealed some bullish indicators, suggesting that Bitcoin (BTC) may be moving into more promising times.
Santiment Analytics reports that Bitcoin supply is still being withdrawn from exchanges.
This is a very strong bullish sign. Since the early 2020 volatility trends, BTC withdrawals from exchanges have become a recurring event.
Throughout the downtrends of 2022, the proportion of HODLers in the total supply held by investors remained the highest.
The data shows that since November 2018, the supply of Bitcoin on exchanges has decreased to its lowest level of 1.74 million BTC.
After last week’s market-wide sell-off, BTC is back around £17,600 at press time. The leading cryptocurrency went on to test the £17k support level as a result.
While FUD falls apart in the market, the support line is still being put to the test.
Another Santiment analysis states that whenever BTC experiences a “notable price dump,” traders continue to go short.
The average Bitcoin funding rates on well-known exchanges like Binance, BitMEX, DYDX, and FTX revealed an odd pattern in traders’ behaviour.
The market-attacking trading behaviour in response to the significant price decrease of August 26 was the “most aggressive” since May.
Rekt Capital, a well-known cryptocurrency expert, provided predictions for the future price of BTC.
According to the expert, historically, BTC bear markets have a tendency to bottom out 365 days after the preceding bull market’s top.
About 300 days have passed since the high of the BTC bull market at £56,100.
It’s interesting to note that the bull market peak of £56,100 has already lasted 300 days. This indicates that the current BTC bear market could be about to come to an end.
Despite a slight uptick in the last few days, on-chain data still shows losses for traders.
This followed BTC’s sudden ascent back above £17,300. However, because the MVRV ratio was at -6.9% at the time of writing, short-term traders were experiencing losses.