Six on-chain metrics suggesting Bitcoin is a ‘generational buying opportunity’
Several on-chain metrics from the Bitcoin
network are flashing buy signals following this year’s rally.
Bitcoin has broken out of its torpor to notch up a 37% gain since the beginning of 2023. However, on-chain data is still signaling it could be a “generational buying opportunity,” according to analysts.
On Jan. 24, researcher and technical analyst “Game of Trades” identified six on-chain metrics for his 71,000 Twitter followers.
The first metric is an accumulation trend score highlighting zones of heavy accumulation in terms of entity size and the number of coins bought.
“Large entities have been in deep accumulation mode ever since the FTX collapse,” the analyst noted, adding that “similar accumulation took place in the 2018 and 2020 bottoms.”
The Bitcoin entity-adjusted dormancy flow is a measure of the ratio of the current market capitalization and the annualized dormancy value.
Whenever dormancy value overtakes market capitalization, the market can be considered in full capitulation which has been a good historical buying zone.
According to Glassnode, this metric fell to its lowest level ever in 2022.