Bitcoin (BTC) remains firmly “bullish” at $23,000, according to new on-chain metrics from one of the industry’s most prominent names.
At preview on January 28, market cyclist and on-chain analyst Cole Garner revealed what he said were “backtested and validated” Bitcoin trading tools.
Garner: BTC price signal should excite bulls
As BTC/USD tries to push liquidity above $23,000, the debate rages whether a significant BTC price correction is due.
For Garner, who offered images of some trading signals to Twitter users over the weekend, there was no doubt – the images were green.
“He looks very bullish right now,” he summarized in the accompanying comments section.
One metric compares the ratio of BTC to stablecoins on exchanges. This has reached a multi-year high, screenshots show, beating the peak of any event since early 2020.
“It’s very rare to go wrong,” Garner said while not providing additional details on the mechanism of action.
Traditionally, high stablecoin liquidity indicates bullish continuation, with funds “waiting in the wings” to enter Bitcoin or other crypto assets.
Garner presented the ratio of on-chain traded volume to profit, reaching the highest level in at least three and a half years.
“It’s generating faster trade signals, with a longer track record. It’s very bullish right now,” he reiterated.
According to the latest data from on-chain analytics company, Glassnode, realized gains versus losses continue to experience the expected recovery in line with price action.
As reported by Cointelegraph, the net unrealized profit and loss – part of the source of BTC not transacted – has also changed this month thanks to Bitcoin’s 40% gain.
Miners were shot in the post-capitulation explosion
Optimism is more focused on the recovery among Bitcoin miners.
Related: Bitcoin hash rate hits new milestone with miners hodling in 1 year low
According to the popular Hash Ribbons metric, the Bitcoin mining sector has recently come out of a period of capitulation that occurred as a result of the post-FTX BTC price decline.
Hash Tape uses a hash rate to determine the miner’s stress time. These recoveries have historically coincided with BTC price “corrections,” as digital asset and global macro investment management firm Wakem Capital Management described this week.
Tweeting Glassnode data, Wakem highlighted that the last capitulation exit came before FTX, denying Bitcoin Bulls the gains associated with the event.
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