On-chain analytics firm CryptoQuant has revealed the five key Bitcoin on-chain alerts that could be to keep an eye on in the coming week.
The first indicator shared by the analytics firm is the 60-day change in the market cap of USDT, the number one stablecoin.
As is visible in the above chart, the 60-day change in the USDT market cap has continued to sit at a notable positive level recently, implying the stablecoin has been witnessing growth.
Stablecoins are one of the main inlets of capital into the cryptocurrency sector, so growth in them can generally be a positive sign. Currently, the 60-day change in the USDT market cap has a value of $10 billion. “This is a clear sign of fresh liquidity entering the market,” notes CryptoQuant.
A low value in the indicator can prove to be a bullish sign, as it implies investor purchasing power in the form of stablecoins is high compared to the Bitcoin market cap.
From the below chart, it’s apparent that the Relative Strength Index (RSI) of the BTC SSR stands at a value of 21 right now, which is considered to be inside the “buy” territory.
Another bullish sign that’s developing for Bitcoin is in the Accumulator Address Demand, an indicator that measures the demand that’s coming from addresses that have zero history of selling the cryptocurrency. These perennial HODLers now own 298,000 BTC, which is a new record.
The indicator has been following a downtrend during the past few months, which is considered to be a bear market pattern. “Watch closely: a shift upward often marks the start of bullish momentum,” says the analytics firm.
During BTC’s recent plunge, the STHs briefly dipped into losses, but the asset has since recovered above their Realized Price of $109,775. Bullish trends have historically continued when the coin has traded above this level.
Bitcoin has climbed back to $114,200 following its recovery surge in the last couple of days.
