CoinMarketCap: On-Chain Analysis
Bitcoin on-chain readings remain bullish – Glassnode
The fall in bitcoin price did not greatly affect the on-chain bullish trend indicators
Cryptocurrency May Repeat 2017 Scenario
The number of bitcoin whales has reached a new high
Bitcoin blockchain data suggests that cryptocurrency still has potential for growth, experts at the analytical service Glassnode say
The local drop in bitcoin below $ 30K did not greatly affect the bullish on-chain indicators. This is the conclusion reached by Glassnode, listing the main bullish indicators of the upcoming rally.
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So, bitcoin’s adjusted spent output profit ratio (aSOPR) began to fall. This means that bitcoins moving between accounts, on average, are no longer sold at a profit..
Thus, for the ratio to fall even lower, investors must be willing to sell at a loss, which is unlikely given the current market conditions, Glassnode said. Experts believe resetting the odds is a prerequisite for the next bullish rally.
Blockchain is the head
Meanwhile, the bitcoin net unrealized profit ratio (NUPL) is about to break through the green range of “beliefs” and enter the blue range of “euphoria”.
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The entry of NUPL blockchain indicators into the blue range often signals a global peak (highlighted in red circles). Some investors may think that bitcoin has reached its peak. However, if you look closely, it is clear that NUPL has not yet hit the blue range at its peak earlier this month (green circles).
Analysts at Glassnode note that the ratio’s activity reminds them of mid-2017. After that, bitcoin managed to grow by more than 900%..
Whales are devouring bitcoin
The number of bitcoin whales (wallets holding at least 1000 BTC) began to grow rapidly after the end of December 2020 exceeded its maximum of 2000 addresses.
“Since the beginning of the year, we have witnessed the creation of 185 new bitcoin whales. In January alone, the growth was 11%, ”analysts say.
It is reported that the January gain was the fastest in the history of Bitcoin. This, according to Glassnode, indicates that the smart money continues to buy up bitcoin. The recent rise in over-the-counter (OTC) transactions suggests that institutions are part of this activity..
At the time of this writing, the price of bitcoin BTC / USDT is $ 31,759. Read about where the price of the cryptocurrency will move next – read the special material BeInCrypto.
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