On-chain knowledge exhibits current pattern within the Bitcoin transaction charges indicator could counsel that the crypto is now coming into the late bear market phases.
Bitcoin “Fees To Block Reward” Metric Has Gone Up Recently
As identified by an analyst in a CryptoQuant post, the BTC charges metric could present that the bear market could possibly be advancing to late stage now.
The related indicator right here is the “fees to block reward,” which measures what share of the overall block reward is made up by the Bitcoin transaction fees.
When the worth of this metric goes up, it means the charge is making up the next quantity of the overall miner reward now.
This may counsel that exercise goes up within the community. Such a pattern usually happens throughout bull market intervals.
On the opposite hand, a downtrend of this indicator could suggest that the blockchain is popping extra inactive proper now. Low values of the metric normally seem throughout bear markets.
Now, here’s a chart that exhibits the pattern within the Bitcoin charges to dam reward (30-day MA) over the previous couple of years:
Looks like the worth of the indicator has been going up lately | Source: CryptoQuant
In the above graph, the quant has marked the essential areas of pattern of the Bitcoin charges to dam reward metric.
It looks like 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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On the opposite, the metric has at all times assumed fairly low values throughout bear market intervals. Both these developments are according to what is anticipated.
Over the previous couple of months, the metric flatlined at a low worth because the charges remained low on account of a scarcity of exercise on the chain.
However, 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 prior to now as properly, they usually have usually signaled the beginning of a late-stage bear market.
If these earlier cases are something to go by, then the present spike within the metric can also counsel Bitcoin is now coming into a late bear interval.
BTC Price
At the time of writing, Bitcoin’s price floats round $31.6k, up 3% prior to now seven days. The under chart exhibits 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 | Source: BTCUSD on TradingView
Featured picture from Unsplash.com, charts from TradingView.com, CryptoQuant.com
