CryptoQuant analyst Avocado wrote that several on-chain data points of Bitcoin have reached the average support level, which indicates a potential major turning point in the long run:
1. The 7-day moving average of the Fund Flow Ratio has touched 0.05 and is now showing a slight rebound. This indicates that investors are starting to trade on exchanges again. The 0.05 level has historically been a major support line where the indicator stops falling and starts to rebound. Such rebounds usually occur at the end of a bear market or halving event and the beginning of a bull market, leading to a long-term sharp rise in the price of Bitcoin.
2. The 30-day moving average of the estimated leverage ratio has formed a key support range between 0.15 and 0.175 and is currently showing signs of recovery and upward movement. With the approval of futures ETFs after 2021 and the recent positive news on Bitcoin options trading, it is believed that the influence of this indicator will continue to grow.
3.Binary CDDâs 30-day moving average is moving between 0.1 and 0.3, indicating that long-term holders are accumulating Bitcoin. When this value increases significantly, it usually signals the end of a bull market.
Avocado concluded that these support levels and Bitcoinâs recent movement are very positive from a long-term perspective.
