James Atkins
Editor
Editor
Ecoinometrics, a data resource that examines key indicators and the long-term (MA) of bitcoin, argues that it’s a “good time to buy” bitcoin.
In a tweet, Ecoinometrics postulated that this could be a good moment for new investors to enter the market.
And for current HODLers to add to their portfolios, based on its analysis and accompanying charts and takeaways.
Ecoinometrics’ research showed that the long-term moving average of Bitcoin’s price is currently at $99, 700.
While key indicators such as hash rate and daily active addresses are both well above their 180 day moving averages.
Despite a minor 0.72% drop in daily trading, Bitcoin is starting the week in a positive light.
The cryptocurrency has increased its value by 15.7 percent over the last seven days, reaching its highest price since early 2018.
The market’s optimism that a powerful rally could be on the way is reflected in positive sentiment, as seen in the chart presented above.
Bitcoin’s value has held steady, suggesting that investors are optimistic about the future.
The 200-day moving average (DMA) is a critical measure in the Mayer Multiple, according to Ecoinometrics, and it determines when it’s a good moment to get involved in the market.
In a more detailed study, the analyst compared the cryptocurrency’s present momentum to the broader market situation.
He points out that Bitcoin appears to be breaking out of its bottom range, which is beneficial to the coin’s momentum.
However, the global economic landscape is tumultuous with change and uncertainty as war and inflation batter nations’ currencies across the globe.
Central banks throughout the world are also turning to regulation, making it impossible to know how the market will move.
Despite all this, Bitcoin is still widely regarded as a risk-on investment at the moment. With global tension and sanctions, as well as growing government regulation.
Despite this, he concluded his study: “So, even though the macro backdrop isn’t attractive, this is a buy.”
The derivatives market, according to Dylan LeClair, has seemingly lost its long-term speculating momentum at the moment.
In a Twitter thread, the analyst dug into the derivatives market for bitcoin businesses and how it may be pushing the overall market.
Because of “non-existent” speculative and funding rates in derivative markets, any long-term Bitcoin rise would not be influenced by derivative trading.
Meanwhile, in previous research, LeClair raised the point that Bitcoin is still in a “really early stage” and that it would take a lot to get the market “derivatively bearish.”
The analyst explains that this is because Bitcoin’s price is not as high as other assets, with BTC currently $9,400.
For Bitcoin to see a long-term bearish trend, LeClair argued that its price would have to fall below $6,000 first.
Summary
The Ecoinometrics research indicates that Bitcoin’s price is currently at $99,700.
While key indicators such as hash rate and daily active addresses are both well above their 180 day moving averages.
The hash rate is a measure of the computational power used to mine Bitcoin.
And the daily active addresses indicates the number of unique addresses.
As such, investors should watch out for these key metrics to get a better idea of when to buy Bitcoin.
Therefore, considering all these, the report of the research on Bitcoin points in one direction: Buy Bitcoin now
Do you agree with this report? Let us know your position in the comment section.
I have been writing copy for blockchain-related projects since 2017. I understand the importance of being able to communicate clearly and effectively with both technical and non-technical audiences. By leveraging my understanding of the crypto industry trends, I can help increase adoption in this rapidly evolving landscape.
