Glassnode: 8/8 Bitcoin On-Chain Indicators Confirm Recovery From Bear
18 April 2023 - 10:00PM
NEWSBTC
8 of 8 Glassnode indicators tracking the recovery progress from the
Bitcoin bear market are now displaying green signals. Bitcoin
On-Chain Indicators May Suggest The Bear Market Is Behind Us The
on-chain analytics firm Glassnode released a “recovering from a
Bitcoin bear” dashboard that combines different on-chain indicators
to know whether the market is making a healthy and robust recovery
from the bear market. “Generally speaking, the behavior of Bitcoin
investors has been remarkably consistent over cycles, which allows
us to develop tools that find confluence,” explains the firm. Eight
metrics are being used here, covering four areas of the BTC market.
The first of these areas involves the spot price’s alignment
relative to two key pricing models: the 200-day simple moving
average (SMA) and realized price. The realized price is an on-chain
pricing model that measures the average market investor’s cost
basis. Whenever the cryptocurrency breaks above these two pricing
models, it’s generally a sign that the market is recovering from a
bearish trend. The second area of interest is the state of network
utilization. The relevant indicators are the number of new
addresses and miners’ fee revenue. When these metrics rise, it
means the blockchain is observing more activity, and hence, there
is currently higher demand for the coin. Related Reading: Bitcoin
Bearish Signal: Exchange Whale Ratio Spikes Profitability-related
indicators are the third batch being combined in this dashboard, as
they are useful for checking whether the selling pressure has
exhausted and whether the market can absorb any sell-side. Finally,
there is the topic of long-term holders (LTHs). Bear market bottoms
form when these investors get the maximum share of the supply,
while recovery happens as the LTHs start spending and new demand
flows in to absorb this selling. Now, here is a chart that shows
what these indicators are signaling regarding the current state of
the Bitcoin sector: Looks like the indicators have lit up in recent
days | Source: Glassnode's The Week Onchain - Week 16, 2023 As you
can see above, the graph has turned dark recently, suggesting that
eight Bitcoin indicators signal recovery from the bear market.
Related Reading: Bitcoin Supply Structure Very Similar To Early
2019, Bull Run Ahead? In the chart, it’s also visible that this
signal has held during past cycles as well, as the cryptocurrency’s
price has generally gone on to rally after the formation of this
pattern. The April 2019 rally, a run that’s quite reminiscent of
the current one as it was also a recovery rally out of the bear
market lows, saw the formation of this pattern midway through it as
well. Based on all these indicators recently entering into the
cryptocurrency’s positive territory again, Glassnode believes “the
Bitcoin bear could very well be behind us.” BTC Price At the time
of writing, Bitcoin is trading around $30,200, up 1% in the last
week. The price of BTC seems to have recovered above $30,000 over
the past day | Source: BTCUSD on TradingView Featured image from
Michael Förtsch on Unsplash.com, charts from TradingView.com,
Glassnode.com
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