Where Bitcoin (BTC) Price is Heading Next? Watch Out For These 3 Metrics!

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Bitcoin price has found a temporary support of around $27.2k after the bullish outlook was rejected slightly above $30k. If the bulls take charge from the current support level, a rebound above $30.6k could push the top digital asset to new highs in the coming weeks. On the contrary, a bearish sentiment could push Bitcoin price to the next strong support of around $25k.

Increase In Crypto Regulations

Fundamentally, the recently passed crypto regulations in the European Union, Markets in Crypto-Assets Act (MiCA), have given hope to most crypto investors. Additionally, Hong Kong is about to pass positive crypto regulations that have attracted Chinese financial institutions.

From the United States, the largest cryptocurrency exchange by daily traded volume, Coinbase Global Inc. has filed a legal action compelling the SEC to provide a clear crypto regulatory framework.

Today, we filed a narrow action in the U.S. Circuit Court to compel the SEC to respond “yes or no” to a rulemaking petition we filed with them last July asking them to provide regulatory guidance for the crypto industry. 1/4 https://t.co/rlsS1DIFfl

— paulgrewal.eth (@iampaulgrewal) April 25, 2023

Key On-Chain Metrics to Watch in Bitcoin Market

According to market intelligence platform Santiment, Bitcoin traders should be aware of bull traps fueled by FOMO traders. The firm noted that an increase in Bitcoin utility has in the past guaranteed consistent growth.

I) Trading volume

At the top list of crucial metrics to watch in the Bitcoin market before the next bull market is the trading volume. Notably, if Bitcoin price is to rebound above $30k again, then Santiment expects the trading volume to rise above March levels.

II) Daily Active Addresses

The second key metric to closely monitor In Bitcoin’s market is the daily active addresses. Reportedly, Bitcoin’s daily active addresses have risen more than 11 per cent while the market price has jumped over 65 per cent since January. Bitcoin traders should monitor the daily active traders to determine the demand against the supply of the asset.

III) Circulating supply

Currently, the unique tokens moving per day, based on a 30-day rolling average, is 6.4 per cent lower compared to January 1. The amount of circulating tokens in unique addresses demonstrates the level of Bitcoin’s utility.

Despite the ups and downs of Bitcoin’s price, these positive developments in crypto regulations and legal action by Coinbase could provide a glimmer of hope for investors. It’s clear that the future of cryptocurrencies is still uncertain, but with these recent developments, it’s worth keeping an eye on the market to see what happens next.

Crypto Pulpit