A crypto trader says a number of signals indicate that Bitcoin (BTC) is gathering bullish momentum under the hood.
Trader Ali Martinez says hundreds of thousands of new Bitcoin wallets were created on Sunday as BTC hit $35,000.
“Bitcoin: more than 700,000 new BTC addresses created [on Sunday] only. This is an important milestone given the growth of the BTC network [one of] the best price forecasters!
The analyst also says that Bitcoin’s current price is now above the cost basis of long-term BTC holders – an on-chain metric that tracks the average purchase price of all coins held for more than six months. According to Martinez, the on-chain signal has historically preceded major Bitcoin bull rallies.
“Bitcoin recently exceeded its holder cost basis from six months to three years by $34,150!
If BTC stays above this level, previously underwater holders may be able to make profits again. This could signal a shift towards bullish market sentiment!
Note that the last three times BTC exceeded its holder cost basis from six months to three years, it underwent a bull run of 4.778%, 99% and 787% respectively.”
At the time of writing, Bitcoin is worth $34,922.
Finally, Martinez keeps a close eye on how much capital is flowing into digital assets. According to the analyst, crypto witnessed an inflow of billions of dollars over a period of 30 days.
“There is currently a lot of capital flowing into crypto, which indicates strong investor confidence.
In fact, we have seen positive capital inflows of almost $10.97 billion, the highest level in 2023!”
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Generated image: Midjourney