- A look at what recent on-chain findings could signal in terms of Bitcoin’s next move.
- Bitcoin sell pressure slowed down paving the way for some accumulation but it might not be out of the woods yet.
It would be wise to look into the state of Bitcoin [BTC] especially after concluding a bearish week. The metrics may offer deeper insights into how recent events have affected BTC holdings’ demand.
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The number of addresses in profit or at a loss is an important metric for Bitcoin analysts. It gives a rough estimate of how investors have been affected by the recent bearish conditions. It can also be used to evaluate the impact of sell pressure.
According to a recent Glassnode alert, the number of Bitcoin addresses at a loss just reached a new monthly high.
#Bitcoin $BTC Number of Addresses in Loss (7d MA) just reached a 1-month high of 15,341,132.768
View metric:https://t.co/s2ciFMlDcX pic.twitter.com/uF1ye6RScD
— glassnode alerts (@glassnodealerts) August 19, 2023
The above means that Bitcoin’s breakeven point is above the current level and confirms the short-term focus. Meanwhile, the BTC amount of supply last active over 10 years just soared to a new ATH. This suggests that long-term holders have not shifted their perspective despite the harsh crash.
View metric:https://t.co/lBBwEqVviB pic.twitter.com/en0bYHRa1K
— glassnode alerts (@glassnodealerts) August 19, 2023
Can Bitcoin secure a bullish robust bullish demand?
Diving deeper we found that the number of addresses that are in loss just soared to a new monthly high. These findings do a great job of identifying the magnitude of the bearish outcome on BTC holders. But those findings do not highlight the subsequent outcome after the crash.
Perhaps an assessment of whale activity on Glassnode may offer insights into whether the market’s next move. Will it bounce back slow or fast, and is more downside likely? Well, addresses holding over 1,000 and over 10,000 BTC dropped off considerably. This confirms that Bitcoin whales have been contributing to sell pressure from 14 to 17 August.
Source: Glassnode
Bitcoin traders should note that the latest findings indicate that the whale selloff has leveled out for now. As such, Bitcoin may enjoy some relief from more downside. On the other hand, the same whale category did not register a sharp bounce.
How many are 1,10,100 BTCs worth today
As far as accumulation is concerned, Bitcoin’s exchange flow data shows that the amount of BTC flowing out of exchanges outweighed inflows. A net flow of coins from exchanges into private wallets is a sign of accumulation.
Source: Glassnode
Bitcoin options open interest declined considerably since mid-August. However, it has also not bounced back in a manner to suggest that the bulls might be about to make a strong comeback. This could signal that the market is not yet clear in terms of recovery.
