The current situation in the cryptocurrency market resembles periods of “hangover” after bear markets in past cycles, says in Glassnode’s weekly review, writes RBC Crypto.
Digital assets continue to trade at historically low volatility, with a range of metrics ranging from $29K to $30K indicating extreme market exhaustion, the report notes.
There are also several signs that the market is somewhat congested, as evidenced by the concentration of short-term holders and average purchase prices close to the current ones, the experts noted.
Investors have reached an all-time low level of willingness to spend coins on the network, as in previous cycles, when a significant part of the capital was concentrated in the hands of long-term holders, analysts say.
With such low volatility, market exhaustion sets in, often resulting in relatively weak demand, the study says. According to their forecasts, the situation is unlikely to change in the near future. In addition, according to their estimates, the majority of investors are at a loss, which also creates resistance when the market recovers.
Last week, Glassnode noted that Bitcoin’s year-to-year range volatility is at a level not seen since December 2016. According to their observations, such a long period of consolidation is extremely rare for a cryptocurrency.
Source: Cryptocurrency
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