Bitcoin's Bullish Signals: These 3 Key Metrics Indicate Potential Upswing, Says Research Firm

Bitcoin's price has been on a rollercoaster ride, with recent highs and lows leaving investors wondering what the future holds. However, a research firm has identified three key metrics that suggest a potential upswing for the cryptocurrency. According to Santiment, a crypto market intelligence platform, the average returns of wallets, the dormancy period of coins, and Bitcoin’s supply on exchanges all indicate a possible upward swing for the leading cryptocurrency by market cap.

Firstly, Santiment highlights the average returns of wallets that have been active in the past 30 days. Currently, these returns are sitting at around -2.9%, which is below the 0% threshold. Historically, accumulating BTC when wallets' average returns are under 0% has proven to be a strong strategy. This suggests that buying or adding to positions could be statistically advantageous.

Secondly, the period of dormancy of coins is another crucial factor. Santiment notes that older BTC tokens are circulating at a healthy rate, indicating a potential rally. This is because dormant tokens are moving at a relatively high frequency, which means stagnant coins are continuing to move and circulate. During elongated bull runs, the mean dollar age of Bitcoin tends to get younger, while bear runs are often characterized by concerningly long periods of dormancy.

Lastly, the supply of Bitcoin on crypto exchange platforms is the final sign of a possible move to the upside. The supply of BTC sitting in known exchange wallets has stayed relatively low after the major exodus of coins from exchanges into cold wallets throughout the tail end of 2024. Currently, 7.6% of Bitcoin is sitting in known exchange wallets, compared to 9.92% six months ago. This low supply on exchanges can contribute to the potential bullish move for Bitcoin, as outlined by Santiment's analysis.



At the time of writing, Bitcoin was trading at $96,290, having declined by nearly 2% in the last 24 hours. However, these metrics suggest a potential bullish move for the cryptocurrency. Investors should keep an eye on these key indicators and consider the broader market sentiment when making investment decisions. As always, it is essential to conduct thorough research and consider multiple sources of information before making any high-risk investments.

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