AASI On-Chain Indicator Points to Possible Bitcoin Recovery

AASI On-Chain Indicator Points to Possible Bitcoin Recovery

On-chain indicator AASI pointed to a likely recovery in bitcoin

Bitcoin is moving out of the short-term oversold zone. This means that the price of the cryptocurrency is likely to rise in the coming days or weeks, according to the Active Address Sentiment Indicator (AASI) on-chain metric.

The graph below shows the yellow line crossing the lower limit of the range of changes in the number of active addresses.

AASI on-chain indicator indicates a likely recovery of Bitcoin

Data: LookIntoBitcoin.

This, according to the description of the indicator, is a sign of improving market sentiment and potential cryptocurrency growth in the short term.

The Net Unrealized Profit/Loss (NUPL) indicator indicates that bitcoin is oversold — the line is again plunging into the “surrender” zone.

AASI on-chain indicator indicated a likely recovery of bitcoin

Data: Look Into Bitcoin.

A similar signal is shown by a longer-term indicator – RHODL Ratio.

AASI on-chain indicator pointed to probable recovery of bitcoin

Data: Look Into Bitcoin.

“The RHODL Ratio is useful for predicting the price of bitcoin amid extreme market conditions. He is able to foresee the period when the price of the cryptocurrency can roll back down. In this case, the metric line is included in the upper range highlighted in red. Also, the price may start to rally after the indicator values ​​stay in the green range for some time,” the instrument’s description says.

At the time of writing, the first cryptocurrency is trading around $21,400. seven days the price of digital gold fell by 11.4%, according to CoinGecko.

Earlier, the founder of Capriole Investments, Charles Edwards, came to the conclusion that the period of capitulation of bitcoin miners has passed. This, according to him, is “a great signal to buy.”

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