Multiple data points point to Bitcoin price gearing up for an explosive price move — but in what direction?
“compression” within the Guppy Multiple Moving Average as a sign of “shorter-term momentum and the potential for a rally as this cohort attempts to flip the longer-term moving averages.”the possibility of “a big move brewing for BTC.” The researchers explained that “historically, BBWP readings above 90 or below 5 have marked major swing points.
While derivatives metrics like futures open interest, long liquidations and coin margined futures open interest are breaking multi-year records, it’s important to note that neither provide absolute certainty on market directionality. It’s difficult to determine whether a majority of market participants are positioned long or short and most analysts will suggest that the surge in open interest is reflective of hedging strategies that are in play.
One thing that is certain is that on-chain data, derivatives data and basic technical analysis indicators all point toward an impending explosive move in Bitcoin price. Bitcoin’s current prolonged period of low volatility is somewhat unusual, but reviewing the data presented by glassnode and Delphi Digital could provide valuable insight on what to expect when certain on-chain metrics hit specific thresholds and this should give investors some ideas on how to position.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.
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