On-chain information reveals current pattern within the Bitcoin transaction charges indicator might recommend that the crypto is now getting into the late bear market levels.
Bitcoin “Charges To Block Reward” Metric Has Gone Up Just lately
As identified by an analyst in a CryptoQuant post, the BTC charges metric might present that the bear market may very well be advancing to late stage now.
The related indicator right here is the “charges to dam reward,” which measures what share of the entire block reward is made up by the Bitcoin transaction fees.
When the worth of this metric goes up, it means the price is making up a better quantity of the entire miner reward now.
This might recommend that exercise goes up within the community. Such a pattern sometimes happens throughout bull market durations.
However, a downtrend of this indicator might indicate that the blockchain is popping extra inactive proper now. Low values of the metric often seem throughout bear markets.
Now, here’s a chart that reveals the pattern within the Bitcoin charges to dam reward (30-day MA) over the previous couple of years:
Seems to be like the worth of the indicator has been going up just lately | Supply: CryptoQuant
Within the above graph, the quant has marked the necessary areas of pattern of the Bitcoin charges to dam reward metric.
It looks as if within the lead as much as and through the bull runs, the worth of the charges indicator has traditionally been very excessive.
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Quite the opposite, the metric has at all times assumed fairly low values throughout bear market durations. Each these developments are in line with what is predicted.
Over the previous couple of months, the metric flatlined at a low worth because the charges remained low as a result of an absence of exercise on the chain.
Nevertheless, only recently the transaction charges has shot up in worth, producing a spike within the charges to dam reward indicator.
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Such spikes have appeared throughout bear markets previously as properly, they usually have typically signaled the beginning of a late-stage bear market.
If these earlier situations are something to go by, then the present spike within the metric can also recommend Bitcoin is now getting into a late bear interval.
BTC Value
On the time of writing, Bitcoin’s price floats round $31.6k, up 3% previously seven days. The beneath chart reveals the pattern within the worth of the crypto during the last 5 days.
The worth of the coin appears to have surged up over the previous day | Supply: BTCUSD on TradingView
Featured picture from Unsplash.com, charts from TradingView.com, CryptoQuant.com