rise to $72,000 is the end, several on-chain metric are saying “no, it’s just the start.” For example, AMBCrypto’s analysis showed that a high number of dormant coins are moving into circulation.
A surge in dormant circulation implies that sidelined Long-term holders are interested in the market. Historically, this is a confirmation of the bull market. Furthermore, the Social DominanceWhen comparing Bitcoin’s price and Social Dominance, we observed that the correlation was low. In past bull cycles, low discussion about BTC irrespective of the price jump was a sign that the coin has not reached the top.
Thus, traders can use this to identify when to buy and the period to sell. At press time, on-chain data showed that the price-DAA was -191.31%. This means that the DAA had fallen much more than the price.From a trading point of view, this divergence could serve as a strong buy signal. Therefore, if activity on the Bitcoin network begins to reach impeccable heights, then the price might rise higher than $72,000.On the technical side, the buy BTC volume was much higher than the sell side.
Besides that, the Open Interest has been increasing, indicating a surge in net positioning. Though the OI shows a 50-50 buyer-seller cohort, the increase implies that buyers were more aggressive.Price-wise, this rise in OI could be bullish for Bitcoin as the uptrend might gather more strength. If the OI continues to increase, a breakout candlestick might appear on the BTC/USD chart.
Should this be the case, shorts with high-leverage positions could face a wipeout. Though longs might profit from the potential rise, traders might need to watch out as volatility might be extreme.Victor is a full-time journalist at AMBCrypto. Before his sojourn into the world of journalism, he was a “buy the top, sell the bottom” merchant while doubling as a sales funnel copywriter. Victor’s focus is the exciting on-chain landscape of the cryptocurrency market and its underlying technology.