Analytical company Glassnode reports that the weak activity of users of the first cryptocurrency is the main signal about the depreciation of bitcoin.
In the weekly report, analysts at Glassnode emphasize that multiple indicators point to bearish sentiment in the market. In addition to on-chain indicators, the rate is influenced by the geopolitical situation and events in the financial markets:
“Cryptocurrency and traditional markets reflect the risks and uncertainties associated with the expected increase in the base rate of the US Federal Reserve in March. There are also concerns about the conflict in Ukraine, growing civil unrest in Canada and elsewhere.”
The number of active addresses in the bitcoin network, states Glassnode, is at the lower boundary of the “bear market channel” – a channel that shows user activity during a fall and market consolidation. Accordingly, the indicator indicates a high probability of a market fall.
The Glassnode report also notes that over the past month, 219,000 bitcoin wallets have been completely emptied. This is also a “bearish signal” – users are selling their BTC holdings in anticipation of a further decline in the value of bitcoin. They also create pressure on the cryptocurrency market.
It is also important that those who bought cryptocurrency at a price higher than the current one often sell bitcoins in order to avoid further losses. Now there are 4.7 million BTC on the market, which were bought at a price higher than the current one. 54.5% of these coins belong to investors who keep them in their wallets for less than 155 days. Such investors are “statistically more likely to take losses than sit them out.”
Earlier, Du Jun, CEO of cryptocurrency exchange Huobi, predicted that a “bullish trend” should not be expected until early 2025.
Source: Bits
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