Glassnode’s weekly on-chain analysis report, Oct. 10, stated that Bitcoin had “remained remarkably steady” in the past weeks, when compared to traditional asset market such as credit, volatility equity, forex, and volatile equity.
It said that Bitcoin volatility has been unusually low against a backdrop of rising central bank rates, rampaging inflation and a strong US Dollar.
The report compared current market conditions with previous bear market lows and concluded that “on-chain metrics and market structure as well as investor behavior patterns are crossing the t’s for an exemplary bear market floor.”
Contrary to volatile equity, credit and FX markets in the past, #Bitcoin has been remarkably stable over recent weeks.
In our latest report, we evaluate if true bottom formation may be in play and adjust several metrics for the influence of lost coins.https://t.co/LUprQjANBA
— glassnode (@glassnode), October 10, 2022
Bear market bottoms are often times of steady and slow accumulation by experienced investors, institutions, and whales.
This report compares two charts: one for the bear market from September 2018 to April 2019, and one for the current bear market that began in April 2022. Both had bear market rallies and capitulation events.
It also reported an increase in Bitcoin whale withdrawals from Exchanges, which is also an accumulation signal because the asset is being stored and not primed for sale. The net whale outflow to exchanges reached 15.7K BTC. This is the highest since June 2022. A whale is an entity that holds more than one thousand coins.
Glassnode also used an Accumulation Trend Score metric to calculate the aggregated balance change intensity for active investors over 30 days. It said that significant accumulation by large entities had occurred before adding the current state, which suggests an equilibrium market structure or neutral market structure. This is similar to early 2019.
According to WooCharts, Bitcoin trades below the key indicators of long-term price models, such as the 200-week moving mean at $23,561 or the realized price at $21,204.
Outlook on Bitcoin Prices
According to CoinGecko, Bitcoin prices fell by 2.2% over the course of the day and are now at $19,000
This asset has failed to break resistance at just below $20,500 and is now heading back towards support, which remains strong at $18,500. BTC could fall to new bear market lows if this happens, but markets are still rangebound due to the slow accumulation and consolidation.
The post Bitcoin Whales Assemble as Bear Market Floor Is Established: Glassnode appeared originally on CryptoPotato.
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