When looking at Bitcoin’s future, things are starting to look better, especially if we focus on long-term data. Several important on-chain indicators have reached support levels, which could mean we’re at a turning point.
According to a recent analysis from CryptoQuant, Bitcoin’s long-term outlook is showing signs of improvement, thanks to some key on-chain data points hitting support levels. If you’re wondering what this means for Bitcoin, take note of below findings.
Fund Flow Ratio: Trading Activity Picking Up
The first indicator CryptoQuant highlights is the 7-day Simple Moving Average (SMA) of the Fund Flow Ratio, which recently hit the 0.05 mark. This ratio looks at how much Bitcoin is moving in and out of exchanges. When it hits 0.05, it has historically acted as a strong support level. In other words, this is often where we see the end of a price decline and the beginning of a recovery.
Typically, when this ratio starts to rebound, as it’s doing now, it signals that traders are becoming more active again. According to CryptoQuant, this could mean that we’re moving out of a bear market (a period of declining prices) and into a more positive phase where Bitcoin’s price could rise over the long term.
Estimated Leverage Ratio: Growing Confidence in the Market
Next, CryptoQuant looks at the 30-day SMA of the Estimated Leverage Ratio. This measures how much leverage—or borrowed money—investors are using to trade Bitcoin. The ratio has found support between 0.15 and 0.175, and it’s starting to move upward. Just ten days ago, Bitcoin’s Estimated Leverage Ratio, had reached its highest level since the start of the year.
When more people trade with leverage, it shows increasing confidence in the market. With futures ETFs gaining popularity and more interest in Bitcoin options trading, this ratio is becoming even more important. In short, more investors are willing to take bigger risks, which could push Bitcoin prices higher in the future.
Binary CDD: Long-Term Holders Are Accumulating
The 30-day Exponential Moving Average (EMA) of Binary Coin Days Destroyed (CDD) is another key metric mentioned by CryptoQuant. This one tracks the behavior of long-term Bitcoin holders—those who have been holding their Bitcoin for an extended period. When this number is low, it suggests that these holders are not moving their Bitcoin, indicating they believe in its long-term potential.
Right now, the Binary CDD is hovering between 0.1 and 0.3, which means long-term holders are quietly accumulating more Bitcoin. Historically, when this metric spikes, it signals the end of a bull market (a period of rising prices). However, since it’s currently low, this could indicate we’re still in a healthy accumulation phase, which is positive for Bitcoin’s long-term outlook. End of August, Popular analyst Rekt Capital predicted a possible October breakout, observing that a re-accumulation phase would be taking place prior to that.
What Does This All Mean?
In short, these metrics give us a positive outlook for Bitcoin, especially when we zoom out and take the long-term view. We’re seeing some signs of recovery in key areas, and that could point to better days ahead for Bitcoin holders. While the data doesn’t guarantee immediate price jumps, it’s a good reminder that Bitcoin’s long-term potential is still strong.
At the time of writing, Bitcoin is moving hands at $ 63,678, up 1.3% in the last 24 hours.
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