Traders Search for Bitcoin’s Next Catalyst | Presented by CME Group

[00:00:03][music] >> Bitcoin has been oscillating in roughly a $20,000 band, and traders are watching closely >> [music] >> for the next catalyst. Will it be on-chain fundamentals setting a floor, or are technical levels simply doing the work?

[00:00:19]On-chain metrics are really a subset of fundamental analysis. It's data which is extracted [music] directly from the blockchain ledger. This includes transaction counts, active wallet addresses, and total fees paid, which signal real-time consumer demand, and provide objective data about network usage, [music] health, activity, and security.

[00:00:42]While technical analysis focuses on historical price patterns >> [music] >> and indicators, traders use technical analysis to help discern certain levels of volume, support, and resistance, but again, are based on data that has happened in the past.

[00:00:57]Currently, it seems as if on-chain metrics have the upper hand, as Bitcoin has broken down near the bottom of the band, and down through many technical levels. But sentiment can change quickly, and on-chain metrics, which again give a current snapshot, can rapidly move the needle.