Popular on-chain data vendor Santiment has published two tweets in which it suggests two bullish signs for the flagship digital currency, as Bitcoin keeps trading in the $38,500 range.
BTC address activity at its highest since November
The Santiment team has tweeted that when an asset shows flat performance, it shows that a bearish or bullish divergence is about to emerge. In the case of Bitcoin, it seems to be bullish, as the activity of Bitcoin addresses has hit a new high since November 2021.
So far, Bitcoin address activity has had its best day this year, the tweet adds.
? Often, a flat price performance day can indicate whether #bullish or #bearish divergences are surfacing. Though #Bitcoin continues to hover at $38.5k, circulation hit its highest day since November, and $BTC address activity had its best day of 2022. ?https://t.co/l58WfVqYPa pic.twitter.com/xpvcvM2fMI— Santiment (@santimentfeed) February 2, 2022
Another bullish signal for Bitcoin
In another tweet published recently, Santiment analysts say they have spotted a bullish signal on their NVT Circulation Ratio model. NVT stands for Network Value to Transactions Ratio. It allows for seeing whether a blockchain network is undervalued or not. When it is undervalued, the signal is bullish for the price. When it is overvalued, it is bearish.
The tweet says that the amount of unique Bitcoins in circulation keeps showing strong performance at the start of February, which is bullish according to the posted chart.
? The amount of unique $BTC being circulated has continued its strong performance to open February, & is flashing a bullish signal on the @santimentfeed NVT model. This implies the amount of coins moving on the network is exceeding expectations at #Bitcoin's current market cap. pic.twitter.com/FA7tIB5uZ1— Santiment (@santimentfeed) February 2, 2022
Similar data from CryptoQuant that also covers 2020 and 2021 confirms that while the Bitcoin price stayed in the $11,000 range in 2020, the network was highly overvalued. However, the year after that, when the Bitcoin price went over $20,000, then peaked at $40,000, $50,000, then $63,500 and finally $68,900 in November 2021, the Bitcoin network was undervalued.