On-chain information reveals latest development within the Bitcoin transaction charges indicator might counsel that the crypto is now coming into the late bear market levels.
Bitcoin “Charges To Block Reward” Metric Has Gone Up Just lately
As identified by an analyst in a CryptoQuant post, the BTC charges metric might present that the bear market might be advancing to late stage now.
The related indicator right here is the “charges to dam reward,” which measures what proportion of the overall block reward is made up by the Bitcoin transaction fees.
When the worth of this metric goes up, it means the payment is making up a better quantity of the overall miner reward now.
This might counsel that exercise goes up within the community. Such a development sometimes happens throughout bull market intervals.
Alternatively, a downtrend of this indicator might 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 reveals the development within the Bitcoin charges to dam reward (30-day MA) over the previous few years:
Appears like the worth of the indicator has been going up not too long ago | Supply: CryptoQuant
Within the above graph, the quant has marked the essential areas of development of the Bitcoin charges to dam reward metric.
It looks as if within the lead as much as and throughout the bull runs, the worth of the charges indicator has traditionally been very excessive.
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Quite the opposite, the metric has at all times assumed fairly low values throughout bear market intervals. Each these traits are in step with what is anticipated.
Over the previous few months, the metric flatlined at a low worth because the charges remained low as a consequence of a scarcity of exercise on the chain.
Nevertheless, 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 up to now as nicely, they usually have usually signaled the beginning of a late-stage bear market.
If these earlier situations are something to go by, then the present spike within the metric can also counsel Bitcoin is now coming into a late bear interval.
On the time of writing, Bitcoin’s price floats round $31.6k, up 3% up to now seven days. The beneath chart reveals the development 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 | Supply: BTCUSD on TradingView
Featured picture from Unsplash.com, charts from TradingView.com, CryptoQuant.com