Market Analysis

Bitcoin ‘so bullish’ at $23K as analyst reveals new BTC price metrics

Bitcoin (BTC) remains firmly “bullish” at $23,000, according to new on-chain metrics from one of the industry’s best-known names.

In a preview on Jan. 28, market cyclist and on-chain analyst Cole Garner revealed what he said were “backtested and validated” Bitcoin trading tools.

Garner: BTC price signals should excite bulls

While BTC/USD attempts to push through liquidity above $23,000, the debate rages as to whether a significant BTC price correction is due.

For Garner, who offered a snapshot of several trading signals to Twitter users at the weekend, there is no doubt — the picture is firmly green.

“They are looking so bullish right now,” he summarized in part of accompanying commentary.

One metric compares the ratio of BTC to stablecoins across exchanges. This has hit multi-year highs, a screenshot appears to show, beating its peaks from any event since early 2020.

“It is rarely ever wrong,” Garner claimed while not providing additional details about its mechanism of action.

Traditionally, high stablecoin liquidity hints at bullish continuation, with funds “waiting in the wings” to enter Bitcoin or other crypto assets.

BTC/USD annotated chart. Source: Cole Garner/ Twitter

Garner presented the ratio of on-chain volume traded in profit, hitting its highest levels in at least three-and-a-half years.

“It generates faster trade signals, with a longer track record. It is so bullish right now,” he reiterated.

BTC/USD annotated chart. Source: Cole Garner/ Twitter

According to the latest data from on-chain analytics firm Glassnode, realized profit versus realized loss continues to stage an expected recovery in line with price action.

Bitcoin net realized profit/ loss chart. Source: Glassnode

As Cointelegraph reported, net unrealized profit and loss — the portion of the BTC supply not being transacted — has also transformed this month thanks to Bitcoin’s 40% gains.

Miners get shot at post-capitulation blast-off

Further optimism focused on a recovery among Bitcoin miners. 

Related: Bitcoin hash rate taps new milestone with miner hodling at 1-year low

According to the popular Hash Ribbons metric, the Bitcoin mining sector has recently exited a period of capitulation which ensued as a result of the post-FTX BTC price declines.

Hash Ribbons use hash rate to determine periods of miner stress. Such recoveries have historically coincided with BTC price “corrections,” as described by digital asset and global macro investment management firm Wakem Capital Management this week.

Tweeting Glassnode data, Wakem highlighted that the last capitulation exit came just before FTX, denying Bitcoin bulls the gains traditionally associated with the event.

Bitcoin Hash Ribbons annotated chart. Source: Wakem Capital Management/ Twitter

The views, thoughts and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

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