Avocado's analysis comes on the back of a 50 basis point interest rate cut by the US Federal Reserve, which has seen BTC rise in price by 7.5% over the past week.
According to the chain, the price of #bitcoin (BTC) is currently on an upward momentum and the crypto asset could rise further.
A report by pseudonymous analyst CryptoQuant Avocado says that several support levels on the #blockchain indicate that #BTC will have positive momentum in the long run, suggesting that the #cryptocurrency is still in the bull season.
According to Avocado, these data points on the blockchain have reached average support levels, and combined with recent price movements, these indicators point to positive sentiment in the long term.
One indicator is the seven-day simple moving average (SMA) of bitcoin's cash flow ratio, which suggests that BTC investors have started trading on exchanges again. The indicator fell to 0.05 (a major support level when the ratio stopped falling) and has now recovered slightly.
According to Avocado, this recovery historically occurs at the end of a bear market, halfway through and at the beginning of a bull market. It usually results in a significant long-term rise in the bitcoin price.
The second indicator is the 30-day SMA of bitcoin's estimated leverage ratio, which is currently showing signs of recovery, forming an important support range between 0.15 and 0.175.
Mr. Avocado said: Given the recent positive news regarding the approval of post-2021 futures ETFs and bitcoin options trading, I think the impact of this indicator will be significant.
The analyst also drew attention to the 30-day exponential moving average (EMA) of the bitcoin coin burst rate (CDD), noting that it is currently oscillating between 0.1 and 0.3. This indicates that long-term holders are accumulating BTC. According to Avocado, a significant increase in the value of this indicator often signals the end of a bull market.
Avocado's analysis is based on the fact that BTC rose 7.
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