Arcane Research: Bitcoin’s on-chain metrics point to a return to all-time highs

February’s correction in Bitcoin pushed the aSOPR indicator into a buying zone. The last time such readings were observed was in September last year ahead of a rally to an all-time high, according to Arcane analysts.

Market reset📊

Last week marked a new record in terms of weekly liquidations of longs, and the funding rates have now been in neutral territory for a week. Is bitcoin getting ready for a new move?

Read more in our weekly market report: https://t.co/465O3JGgf1

— Arcane Research (@ArcaneResearch) March 2, 2021

The SOPR metric is calculated by dividing the USD-denominated realized value by the cost at the time of output creation and can be used to identify extremes. According to the description, the adjusted measure (aSOPR) excludes from calculations all outputs with a \”lifespan\” of less than one hour.

Data: Arcane Research.

The aSOPR indicator has fallen below 1 for the first time since September 2020. Historically, this metric signalled favorable buying opportunities for Bitcoin from a risk/reward perspective.

February’s Bitcoin correction by daily close was 19.1%. This is lower than January’s 25.2%. The weekly long-liquidations volume on Bitcoin futures reached a new record ($4.1 billion).

Data: Arcane Research.

Analysts at Arcane Research highlighted the importance of the $52,000 level for Bitcoin’s near-term prospects. Holding above this level would create the groundwork for a return to the all-time high. Failure would prolong the “range-bound trading” with a risk of returning to recent lows.

Data: Arcane Research.

Earlier, CrossTower crypto-trading platform analysts said that interest from major investors in Bitcoin would continue to support the asset price above $50,000.

Earlier, ForkLog published a February overview of the main events in the cryptocurrency market.

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