Glassnode: BTC Bull Market in the Past?

The fall in the price of Bitcoin caused a real stir among investors. Have the bulls run out of steam?

Today, the price of cryptocurrency fell to 54 thousand, and then, at the time of writing, consolidated at the level of $55,700. Perhaps this is the end of the bull market? According to Glassnode's analysis, no!

Analysis of the Bitcoin chart, according to analysts, indicates the redistribution of the cryptocurrency from old holders to new investors.

According to Glassnode, wallets that store the first cryptocurrency continue to increase savings. Since 2018, the number of Bitcoins in their accounts has increased from 3.97 to 5.2%.

 

 

The desire to accumulate has been observed since the middle of 2018. Against the backdrop of the pandemic, the situation worsened and the rate of accumulation declined. However, this did not affect the large holders of the cryptocurrency.

The number of Bitcoin whales with more than 100 BTC accounts increased by 0.87% over the year. Despite the modest growth rate, these wallets hold 62.6% of Bitcoins. That is, the confidence of holders in Bitcoins is simply iron.

Glassnode analysts assessed the risks of holding reserves for investors. This graph shows a reserve risk oscillator. Currently, the figure is at 0.008.

 

 

Higher risk rates are marked in blue on the graph. The bull market, if you check the chart, ended as soon as the indicator on the chart rose above 0.02 points.

So far, it's a long way off. However, as this indicator increases, there is a gradual redistribution of funds. As the risk indicator increases, holders sell some of their Bitcoins, and BTC is redistributed among new investors.

However, as the analysis of purchasing power shows, even on such large cryptocurrency exchanges as Binance, there is very little free money in circulation.

Therefore, a significant jump in the price of Bitcoin (at 20% and above interest) should not be expected. However, the market should also not sit much, because the bullish momentum is not yet over.

📌 Subscribe to our Telegram, Twitter and Facebook to be the first to know the news of cryptocurrencies!

The article has an informational character, reflects the opinion of the author. Before you make a decision, analyze the market situation.