Santiment, a crypto analytics firm, Bitcoin (BTC) It examines key on-chain metrics for cryptocurrency and says that a big week could be waiting for the top cryptocurrency.
In Santiment’s post on Twitter, he said that BTC is showing signs of on-chain strength, which could herald another big move in the coming days.
“Bitcoin’s token circulation increased last week. One of the most reliable indicators in crypto, the number of unique tokens moving on BTC’s network has reached its highest week since May. If this trend continues, we could enter another big week.”
According to Santiment, the token circulation shows the number of cryptocurrencies used in a given time period and gives an idea about the health of the crypto asset. Santiment also points out that the supply of Bitcoin on exchanges is at its lowest level in more than two years.
“Bitcoin is on the verge of returning to $50,000 levels for the first time in four weeks, with the percentage of supply on exchanges reaching its lowest level since June 4, 2019. A 30-month low reduces the risk of a major panic selling.
Santiment, who also examines Ethereum (ETH), says that while the second largest crypto asset’s supply on exchanges continues to decline, ETH appears to be following in the footsteps of Bitcoin.
“The supply of ETH on exchanges continues its downtrend as it has fallen sharply over the past two weeks regardless of price action, now it has reached a six-month low.
It looks very good so far, showing market participants moving into accumulation and HODL mode.”
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