These Three Metrics Are Signaling a Potential Bullish Move for Bitcoin, According to Analytics Firm Santiment

New data from market intelligence firm Santiment reveals three signals that possibly indicate an upcoming bull run for Bitcoin (BTC).

In a new update, the crypto analytics platform says that the average returns of wallets, period of dormancy of coins, and Bitcoin supply on exchanges all point toward a swing to the upside for the top crypto asset by market cap.

According to Santiment, history shows that accumulating BTC when wallets’ average returns are under 0% is a strong move.

“Despite the high levels of polarization cryptocurrency markets are currently showing, it’s encouraging to see that Bitcoin’s on-chain metrics are pointing to several bullish divergences. For one thing, the average returns of wallets that have been active in the past 30 days are sitting at about -2.9%.

As long as returns remain below 0%, history has indicated that buying or adding on to your position is doing so at a statistically strong time.”

Santiment notes that older BTC tokens are circulating the market at a “healthy rate,” a sign of an upcoming rally.

“Dormant tokens are continuing to move at a relatively high frequency…

In short, when [that is happening], it means that stagnant coins are continuing to move and circulate at a healthy rate. During elongated bull runs, we almost always see the mean dollar age getting younger… Oftentimes, bear runs have concerningly long periods of time of dormancy.”

Santiment then says the final sign of a possible move to the upside for the flagship digital asset is the amount of BTC sitting in crypto exchange platforms.

“We would also be remiss not to mention the fact that the supply of Bitcoin on exchanges has stayed relatively low after the major exodus of coins from exchanges (into cold wallets) throughout the tail end of 2024. For comparison, 7.6% of Bitcoin is sitting in known exchange wallets today versus 9.92% six months ago.”

BTC is trading for $98,427 at time of writing, a fractional decrease over the last 24 hours.

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