Market intelligence platform CryptoQuant analysts have identified key on-chain metrics that suggest the bitcoin (BTC) price may have hit bottom and that cryptocurrencies are poised for a rally.
The latest weekly report from CryptoQuant highlights indicators such as increased bullish momentum, growing BTC demand, and faster stablecoin liquidity growth as signals to monitor.
The Bitcoin Bull-Bear Market Cycle indicator from CryptoQuant currently indicates that the crypto market is at its least bullish state since March 2023. To see a price recovery, bullish momentum needs to increase, with the indicator surpassing its 30-day simple moving average.
Bitcoin demand growth also needs to pick up to levels seen earlier in the year when U.S. spot Bitcoin ETFs were launched. Although demand has improved slightly since May, it remains slow compared to earlier in the year.
Increased buying from long-term Bitcoin holders could indicate a price bottom. Currently, these investors are purchasing BTC at a monthly rate of 72,000 BTC, lower than the 160,000 BTC rate seen in Q1. More significant purchases are necessary for prices to rise.
Bitcoin’s key support level is $56,000 based on Metcalfe price valuation bands. A drop below this level could lead to a major correction in the market. Positive unrealized profit margins for traders and an increase in Bitcoin flow from exchanges to Coinbase could signal upcoming rallies.
Stablecoin liquidity growth, particularly in Tether’s market cap over 60 days, indicates capital inflow into the market, a critical factor for price increases. These metrics suggest that the crypto market may be primed for a rebound.