- Bitcoin’s rainbow chart revealed that BTC was in an accumulation phase.
- Statistics suggested that investors have already started buying BTC.
Like most cryptos, Bitcoin [BTC]leading the pack, the past 24 hours also turned bullish. So let’s review a few key metrics of BTC to understand if this is still the right time for investors to buy BTC.
Should you buy Bitcoin?
CoinMarketCaps facts revealed that the price of BTC has increased marginally over the past 24 hours. At the time of writing, it was trading at $61,107 with a market cap of over $1.20 trillion.
IntoTheBlock, an analytics and statistics provider, recently posted tweet highlight an important benchmark.
The tweet talked about BTC’s MVRV ratio and mentioned that when the metric falls below 1, it presents an opportunity for investors to accumulate.
Similarly, if the MVRV ratio crosses above 3, it becomes a good opportunity for investors to sell. At the time of writing, BTC’s MVRV ratio had a value of 1.93.
This meant that Bitcoin investors needed to prepare as a buying opportunity could soon arise.
Source: IntoTheBlock
Root, a popular crypto analyst, posted tweet mentioning yet another important BTC statistic. The tweet used BTC’s on-chain value map, which showed that BTC was fairly valued.
This therefore also suggested that investors might consider stockpiling.
AMBCrypto then checked Bitcoin’s Rainbow Chart to see what that metric had to offer. According to our analysis, the price of BTC was in the ‘accumulate’ phase, which further indicates that this is the right time to accumulate.
Source: Blockchaincenter
A look at what investors are doing
AMBCrypto then checked BTC’s on-chain data to find out if investors started accumulating. According to our analysis of Santiment’s charts, Bitcoin supply on the exchanges fell, meaning buying pressure increased.
The fact that investors were stockpiling BTC was further evidenced by the significant spike in currency outflows on August 9.
Moreover, the top players were also actively reading BTC as the number of whale transactions increased.
However, despite investors buying BTC, weighted sentiment dropped and turned negative. This meant that bearish sentiment around the coin increased.
Source: Santiment
We then planned to look at BTC’s daily chart to see if the drop in weighted sentiment could result in a price drop in the coming days.
Is your portfolio green? View the BTC profit calculator
According to our analysis, BTC’s Chaikin Money Flow (CMF) registered a sharp decline, indicating a bearish takeover.
At the time of writing, BTC was testing its 20-day Simple Moving Average (SMA), as represented by the Bollinger Bands. Notably, the MACD showed the possibility of a bullish crossover, which could successfully allow BTC to rise above the 20-day SMA.
Source: TradingView