Bitcoin on-chain metrics are now bullish: Bitfinex

• The Bitfinex Market Report Points to Bullish Measures for BTC
• Offer in Profit, Bitcoin Realized HODL (RHODL) Multiple Risk Ratio and Reserve all blinking green.
• Bitcoin traded above $23,000 again after falling on Monday following the broader market’s reaction to the economic news.

Bitcoin is trading at around $23,360 at the time of writing, up about 2.4% in the past 24 hours as the cryptocurrency flashed green on Tuesday amid improving market sentiment.

For the world’s leading cryptocurrency by market capitalization, the on-chain metrics seem to be turning north to indicate a strong bullish case.

Bid in profit of 20%, buy signal points

According to analysts at Bitfinex, one of the Bitcoin on-chain metrics that indicates new bullish momentum is the supply-to-earnings indicator. The data shows that the bulls are looking to successfully absorb selling pressure in the short-term and turn some long-term HODLers into profits.

Analysts wrote in a report released on Monday that the note of the metric on the 90-day time frame highlights a 20% jump in the “offer-in-earning” chart in January 2023.

“This means that the largest and longest-term investors are currently holding profitable positions on paper. This is healthy for the latter half of a bear market as a 30-day sustained uptrend after a broad-based downtrend on this indicator has historically provided a good buy signal over the next two years.Note, the Bitfinex team.

As far as the markets are concerned, the above scenario does not mean that the cryptocurrency market is poised for an “only up” move. However, the forecast is for the bulls to have the upper hand in the spot markets, a scenario that historically reflects “late bull markets and early bull markets.”

Bitcoin Realized HODL (RHODL) Multiple, also historically bullish, has been in an uptrend as well. According to the data, RHODL Multiple remained positive over the course of 90 days, also indicating profitability for HODLers.

# Bitcoin Balance stats now in favor of HODLers! 🙌
On-chain metrics are fluctuating higher as we see profitable selling by HODLers both short and long term.
Dive into the details in the latest Bitfinex Alpha: https://t.co/aBJ2teTpVM pic.twitter.com/lBvlb4o43A

– Bitfinex (bitfinex) February 6, 2023

Major metrics point to a 10x jump in the BTC price

Aside from the 90-day moving average, other technical indicators that are turning green include the adjusted net income expended earnings rate. According to on-chain data, the index is currently above one, indicating that net sales across the Bitcoin market are profitable.

Also, the Realized Profit to Loss Ratio (RPLR) is above zero, which also confirms the profitable selling observed in the past few weeks. The metric is currently moving towards 0.2, which is a similar reading as the RPLR scale when Bitcoin fell to lows of $3,600 in 2019. After the RPLR hit 0.2, BTC price flipped green and rose 19 times, reaching an all-time high in November. 2021.

The Bitcoin Reserve Risk Percentage indicates that the HODLer’s conviction is high

Looking at a longer timeframe, Bitcoin’s on-chain metrics also point to a bullish outlook. One such technical indicator is the reserve risk ratio.

According to on-chain analytics platform Glassnode, the Bitcoin reserve risk ratio has fallen to an all-time low. Bitfinex analysts noted that this puts the metric lower than it was when markets bottomed out in 2019 or 2020.

Since the ratio is a cyclic oscillator that highlights price vs price. HODLer conviction, with an incentive to sell against opportunity cost, very low ratio translates to higher conviction among investors.

The positive outlook for Bitcoin is also seen in the Realized Market Capitalization Ratio (MVRV), which has recovered and often coincided with historic bullish returns.