Glassnode: 8/8 Bitcoin On-Chain Indicators Confirm Recovery From Bear
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.
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.
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
Source: NewsBTC.com
The post Glassnode: 8/8 Bitcoin On-Chain Indicators Confirm Recovery From Bear appeared first on Crypto Breaking News.
Read more: https://www.cryptobreaking.com/glassnode-8-8-bitcoin-on-chain-indicators-confirm-recovery-from-bear/
Text source: Crypto Breaking News
