At the time of going to press, Bitcoin’s chart showed green candles for the tenth day in a row, despite some corrections yesterday. Even at the time of this report, the cryptocurrency was trading in the green at $ 41,758.13. This short-term bull rally brought a lot of profits for investors.
Now, however, the important question arises: Can the market keep up this run? And if so, what course goals are we pursuing? On-chain metrics could provide an answer to these questions.
Where is the market right now?
Looking at Bitcoin’s balance sheet on all exchanges, it seems that the week-long accumulation trend is still going on. In just over 4 days, nearly 110,000 bitcoins left the exchanges. This amounted to around $ 4.5 billion in BTC. With such a strong accumulation, accompanied by an increase of 13.3%, the need for steady movement comes into play.
Additionally, spot trading is also currently slipping after the stellar growth seen over the course of the week. In order for Bitcoin to grow steadily, spot trading must regain momentum.
In addition, the daily volumes were again in the consolidation range despite the strong performance, which will not do the king coin much. The volume must be kept at least above $ 50 billion to bring BTC near its April price level.
Necessary future conditions
Here, SOPR is an important metric when it comes to understanding the current profit level. Put simply, the SOPR above 1 is a bullish confirmation while below 1 is not that good for BTC. After hitting highs of 1.04, the indicator fell back down yesterday. That is a good thing, because the correction can now help to stabilize the SOPR above 1. This is exactly what is needed for a consistently strong market.
It shouldn’t drop back below that black line as that will be a relatively bad sign after a strong week of earnings. This brings us to the status of the winnings.
Realized gains / losses show that after reaching $ 4 billion, gains dropped to between $ 200 million and $ 300 million. Given the historical performance of this metric, the profit / loss ratio needs to maintain stable earnings as it did during the April rally.
The likelihood of BTC climbing above $ 50,000 will only increase as investors participate, and that will only happen when the market shows gains.
These are the market conditions that Bitcoin will need to continue its rally on the charts. Well will it? That may be the subject of another article.