1. Fund Flow Ratio Rebound Signals Market Recovery
2. Increased Leverage in Bitcoin Futures and Options
3. Long-Term Holders Accumulating Bitcoin

A recent analysis by CryptoQuant contributor Avocado_onchain has highlighted several key on-chain metrics that signal a potential turning point in Bitcoin’s long-term outlook. The analysis shows that Bitcoin’s Fund Flow Ratio and other critical metrics have rebounded, suggesting the end of the current bear market and the beginning of a bull market recovery.

Fund Flow Ratio Rebound Signals Market Recovery

The Fund Flow Ratio measures the ratio of Bitcoin inflows to outflows on centralized exchanges. Historically, a low ratio, particularly at 0.05, has signaled the end of bear markets and the potential start of a price recovery. According to Avocado_onchain’s analysis, the seven-day SMA of the Fund Flow Ratio has recently rebounded at this crucial level, suggesting that Bitcoin may be entering a period of sustained growth.

Increased Leverage in Bitcoin Futures and Options

The analysis also points to upward momentum in the 30-day SMA of the Estimated Leverage Ratio, which is currently moving between 0.15 and 0.175. This increase in leverage is driven by rising interest in Bitcoin futures and options trading, indicating that traders are positioning themselves for potential price gains in the coming months. The Estimated Leverage Ratio reflects the amount of open interest relative to Bitcoin’s price, and its upward trend suggests that investors are becoming more confident in Bitcoin’s price stability and upside potential.

Long-Term Holders Accumulating Bitcoin

Another positive indicator is the 30-day EMA of Binary Coin Days Destroyed (CDD), which shows that long-term Bitcoin holders are continuing to accumulate. The Binary CDD metric tracks the movement of older Bitcoin that has remained inactive for a significant period, and a low CDD suggests that long-term investors are holding onto their Bitcoin rather than selling. The accumulation of Bitcoin by long-term holders is considered a bullish signal, as it reflects confidence in future price growth and reduces the selling pressure typically seen in bear markets.

The combination of the Fund Flow Ratio rebound, increased leverage in Bitcoin futures, and accumulation by long-term holders suggests a potential bull market for Bitcoin. With several key metrics reaching critical support levels, CryptoQuant’s on-chain analysis points to growing confidence in Bitcoin’s long-term price outlook and the possibility of sustained price growth.