While Bitcoin is rangebound between $36k and $45k, the latest Glassnode data is showing us how economic conditions are affecting holders’ hands. Covered: Bitcoin Glassnode Data The Next Move From Bitcoin Will Be A Decisive One The sobering reality that sometimes, prices are not “up only” is really starting to set in for Bitcoin holders, […] The post Bitcoin’s Next Move Will Be A Decisive One — Here’s Why appeared first on CryptosRus.

Bitcoin’s Next Move Will Be A Decisive One — Here’s Why

While Bitcoin is rangebound between $36k and $45k, the latest Glassnode data is showing us how economic conditions are affecting holders’ hands.

Covered:

  • Bitcoin Glassnode Data
  • The Next Move From Bitcoin Will Be A Decisive One

The sobering reality that sometimes, prices are not “up only” is really starting to set in for Bitcoin holders, based on the latest on-chain data from Glassnode. But despite the sell-off we’ve seen over the past several months, there’s a silver lining that’s not getting discussed here. Where is Bitcoin heading next, and why is the current price action such a big deal?

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Bitcoin Glassnode Data

Now, there’s a lot going on here in this first chart, the “Bitcoin Accumulation Trend Score.” But basically, what this data is telling us is that macroeconomic conditions have injected a lot of fear and indecisive action into the market. Notice the 0-1 trend score, with darker shades representing accumulation (buying), and lighter shades as distribution (selling).

What’s most interesting is that the first peak at $64,000 was a heavy distribution phase (red/yellow), whereas the second peak at $69,000 marked a major accumulation zone (purple) for Bitcoin holders. It appears that Bitcoin “diamond-handers” were ready for new all-time highs but got their hopes crushed once macro uncertainty began to creep into the conversation.

The latest highlighted zone (orange) contains a mixture of both red and yellow, which basically means that we are leaning towards more selling pressure, yet accumulators are stepping in to counteract it. This explains why we’ve seen so much chop over the last few weeks — big money is moving in and out with no clearly defined trend. I guess a lot of those accumulators are getting spooked out of the market.

Let’s zoom out a bit to see why Bitcoin’s next move will be a crucial one.

Now, for the most part, accumulation zones are typically correlated with uptrends, as you can clearly see from each of the major price spikes. However, I’ve highlighted three key regions in which we saw an accumulation zone in a downtrend followed by a phase of more distribution (red/orange). Now, the previous two discrepancies in the data ended up marking major historical bottoms for Bitcoin before continuing the “up only” trend. Is it possible that the current discrepancy could mark the bottom as well?

With nearly every bearish outlook on the market you can think of — rate hikes, inflation, literal war — are the markets gearing up to feel those effects, or have they been getting priced in since November now?

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The Next Move For Bitcoin Will Be A Decisive One

If we’re basing our outlook purely off of on-chain metrics (clearly a brilliant idea, right), then Glassnode’s data would suggest that the bottom is in. But if the market still has yet to price in negative economic consequences, then we can expect to see more red and yellow getting painted on that Glassnode data set.

Let’s look at the BTC price chart to see what’s coming next.

Bitcoin is currently wedging itself in between the 50-week (green) and 100-week (purple) estimated moving averages (EMAs). Historically, the only other times this has happened following a major uptrend, what transpires next is a bloody spill back down to the 200-week EMA (red). I’m not saying that’s where Bitcoin is heading next, but to count out the idea considering overhead economic conditions would be akin to burying our heads in the sand.

The next move will be so crucial because, we’ll either be met with a dreary few months ahead, or Bitcoin will break the course of history for the first time and reclaim price levels back above the 50-week EMA. Doing so would signify unfounded strength in Bitcoin, as the crypto asset has never had the strength to do so before.

We’ll have to see what happens in the coming weeks, but rest assured that with all the macroeconomic uncertainty ahead, Bitcoin is still on a trajectory to win out in the end.

The post Bitcoin’s Next Move Will Be A Decisive One — Here’s Why appeared first on CryptosRus.