Historic information from an on-chain indicator could recommend that Bitcoin might not be in peril of one other sharp crash proper now.

Bitcoin Spot Alternate escrow addresses stay at very low ranges

As identified by one analyst in a CryptoQuant submit, there are indications that one other crash much like that seen within the third quarter of 2018 is at present unlikely.

The related indicator right here is the “Money Alternate Deposit Deal with”, which is a measure of the overall variety of bitcoin pockets addresses at present sending transactions to centralized money exchanges.

Usually, traders deposit their cash on spot exchanges on the market functions. Due to this fact, a spike on this metric might be bearish for the value of the crypto because it may very well be a sign of the dumping habits of numerous addresses.

Then again, low values ​​imply that not many holders are at present rising the promoting strain available in the market.

Now here’s a chart displaying the pattern of bitcoin money alternate escrow addresses over the previous couple of years:

It appears to be like just like the value of the metric has been dropping for the previous few months | Supply: CryptoQuant

As you possibly can see within the chart above, the quant has marked the related trending zones for the bitcoin money alternate deposit addresses.

Evidently often during times when this indicator has risen sharply to native highs, BTC worth has additionally noticed a prime and subsequently declined.

Since final 12 months’s bull run, addresses for deposit on spot exchanges have declined total, solely hitting a number of peaks over the interval.

Some traders have been questioning these days if there might be one other robust drawdown for Bitcoin within the close to future, similar to the one skilled by the 2018 bear market after the same sideways motion as now.

Trying on the chart for the pattern in the course of the 2017/2018 cycle, it’s evident that the metric declined after the bull run high after which stagnated at low ranges because the bear market continued.

Nevertheless, within the third quarter of 2018, the indicator out of the blue jumped up. About a number of months after this occurred, the value witnessed a crash.

Since there hasn’t been such a pointy enhance within the indicator in latest weeks, the analyst believes that there are not any indicators {that a} comparable decline as then would happen now.

BTC worth

On the time of writing, Bitcoin’s worth is hovering round $18.8k, down 4% over the previous week.

The value of the crypto seems to have fallen again under the $19,000 mark | Supply: BTCUSD on TradingView Featured picture by André François McKenzie on Unsplash.com, Charts by TradingView.com, CryptoQuant.com