bottoming out in the game? Glassnode looks at the state of Bitcoin as whales accumulate over $300,000,000 in BTC
According to leading crypto analytics firm Glassnode, several metrics suggest Bitcoin (BTC) could establish a bear market bottom.
Glassnode notes in a new analysis that Bitcoin’s accumulation trend value has shown “a series of consecutive events” similar to the 2018/2019 bear market.
The accumulation trend score shows the aggregate balance change intensity of active investors over the past month.
Says the analytics company
“Throughout the early 2022 capitulation, the value of the accumulation trend indicates significant accumulation by large firms as well as conquering the recent bear market rally to $24,500 for exit liquidity. Currently, this metric indicates a balanced (neutral) structure of the market, which remains similar to early 2019.”
Source: Glassnode
Glassnode also notes that there has been a surge in net Bitcoin Whale withdrawals over the past few weeks. Exchanges recently registered outflows of 15,700 BTC worth over $300 million – the biggest net whale pull since June.
Source: Glassnode
The analytics company also calculated the cost basis for active whales, which is a psychologically important level for large investors.
“By price stamping the whale cohort (1,000+ BTC) deposit and withdrawal volumes to/from exchanges, we can estimate the average price of whale deposits/withdrawals since January 2017. This whale cost base is currently around $15,800.”
Source: Glassnode
The analytics firm concludes its report by noting that Bitcoin appears to be about to print a bear market bottom.
“In many ways, many on-chain metrics, market structures and investor behavior patterns dot the 1 and cross the Ts for a textbook bear market bottom. A key item missing is the length of time, which history suggests is several months away before a full recovery.”
Bitcoin is trading at $18,990 at the time of writing. The top-rated crypto asset by market cap is down more than 2% in the past 24 hours.
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