Welcome to Barmy’s on-chain analytics.
Bitcoin has been trading in the range of $20,000 and $23,000.
Meanwhile, the Fear & Greed Index is at 20.
Overview of the economy
First of all, the current global macroeconomic overview is very bad, the Russia-Ukraine conflict affects the oil supply, commodity prices rise, the economy stagnates; High inflation caused Fed continuously adjust interest rates, and the Japanese YEN hit the lowest level in the past 20 years.
The major financial news this week will be heavily focused on the euro. We will witness some political instability news in Italy. In addition, on Wednesday, GBP will release CPI along with Governor Bailey’s speech.
And the Dollar is currently too strong due to economic recession expectations. Many economic data indicate that the US CPI has not peaked yet. Currently, the market is quite hesitant because it is not known whether the Fed will strongly increase 1% or only 0.75% this month.
On-chain data shows that the amount of BTC transferred to the exchange has been decreasing.
After witnessing the record amount of BTC which were transferred to exchanges, we could see this metrics has been decreasing. This shows the selling demand has been decreasing. We need to see the other indicators to see whether or not BTC price is in the dip.
Some on-chain metrics shows that BTC price is in the dip now
This is an indicator to measure whether the current revenue of miners is larger or smaller than the average of the past 365 days (specific information you can refer to here). According to Crypto Quant, when this index hits 0.5, the market has bottomed and shows signs of peaking when it hits 4.
Meanwhile, the Stablecoin Supply Ratio (SSR) is still in 4.63. This metric is calculated simply by dividing the Market Cap of Bitcoin by the Market Cap of Stablecoins. When this index decreases, it shows that there are more Stablecoins compared to BTC in the market and can create buying power. And vice versa, when this index increases, it is a sign of a decrease in buying power and may be a correction signal.
This week, the metrics are not really different from the past 2 weeks. No significant signal is established. We need to wait for the next movement of Bitcoin and other global financials news from interest rate and unemployment rate.
Some on-chain data shows that BTC has reached a buy zone and possibly bottomed out.
Investors could start DCA but setting up stoploss is really important.
All information above is NOT financial advice. Please do your own research.