Report: On-chain metrics confirm market bottom

On-chain indicators point to the market bottom, improved market sentiment, and preparation for a new Bitcoin rally. This comes from ForkLog’s analytical report.

The long-term RHODL Ratio indicator leaves the ‘green zone,’ the most attractive for hodlers:

The previous attempt to exit deep oversold conditions occurred in November. It did not succeed due to the ‘black swan’ — crash of FTX — and the subsequent contagion of the market.

The on-chain metric MVRV Z-Score gives a similar signal:

The indicator based on the ratio of realized to market capitalization also left the ‘green zone’ in the second half of January. Historically, such events have always preceded the start of a bull market.

The aSOPR indicator in mid last month finally surpassed the 1.0 threshold, from below which it had not risen since April of last year.

Rising values of the metric signal improved market sentiment and also indicate sufficient demand to absorb selling pressure from profit-taking.

Earlier Glassnode analysts concluded that Bitcoin had recovered from the FTX collapse.