The price of Bitcoin will continue to rise, based on these support levels in the chain

The price of Bitcoin (BTC) is currently on an upward trajectory and there is a possibility that the crypto asset could go higher, according to data from the chain.

A report by CryptoQuant pseudonymous analyst Avocado revealed that various levels of support on the chain suggest a positive turning point for BTC in the long term, indicating that the cryptocurrency is still in its bullish season.

Positive outlook for Bitcoin

Alvocado said that these data points for the chain have reached their average support levels, and together with recent price movements, these metrics indicate positive sentiment from a long-term perspective.

One of the metrics is the seven-day simple moving average (SMA) of the Bitcoin Fund Flow Ratio, which suggests that BTC investors have started trading the stock market again. The metric has fallen to 0.05, a level that serves as important support when the ratio stops declining, and is now recovering slightly.

Alvocado said the recovery historically occurs at the end of a bear market or halving event and at the start of a bull run. It generally leads to substantial long-term increases in the price of bitcoin.

The second metric is the 30-day SMA of the Bitcoin Estimated Leverage Ratio, which is currently showing signs of recovery and has formed a critical support range between 0.15 and 0.175.

“With the approval of futures ETFs after 2021 and the recent positive news about Bitcoin options trading, I believe the influence of this metric will continue to grow,” Avocado said.

The analyst also highlighted Bitcoin’s Binary Coin Days Destroyed (CDD) 30-day exponential moving average (EMA), which currently stands between 0.1 and 0.3. This indicates that long-term holders are hoarding BTC. According to Alvocado, a significant increase in the value of this metric often signals the end of a bull market.

Bitcoin up 7.5% weekly

The avocado analysis comes as BTC is up 7.5% in the past week, triggered by the Federal Reserve cutting its interest rate by 50 basis points. The Fed’s move increased the flow of cash into the US and intensified activities in the bitcoin futures and perpetual markets, leading to an increase in open interest and subsequently a rise in the value of the active

According to data from CoinMarketCap, BTC was worth $63,500 at the time of writing, having registered a slight increase in the past 24 hours.

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