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Calm Before the Storm? Blockchain Analytics Firm Glassnode Weighs In on State of Bitcoin

Popular blockchain analytics agency Glassnode says crypto traders could also be taking a look at the “calm earlier than the storm” for Bitcoin.

In their new weekly report, Glassnode says the total Bitcoin ecosystem has turn out to be quiet, doubtlessly hinting {that a} huge transfer is on the horizon.

“It has been an impressively quiet week in the Bitcoin market as volatility continues to seep out, and costs squeeze into a good consolidation vary… It is beginning to really feel like the calm earlier than the storm as muted and quiet exercise seems throughout each spot, spinoff and on-chain metrics.”

The analysis agency posits that since the spinoff markets have turn out to be a lot much less energetic, any massive strikes for Bitcoin might be sparked by provide and demand from spot markets moderately than choices and futures-driven hypothesis.

“With such a big decline throughout all derivatives markets, it turns into more and more possible that market volatility might be pushed by spot volumes, moderately than quick/lengthy squeezes or leveraged liquidations. Thus, the path of the subsequent massive transfer is prone to strongly mirror underlying provide and demand (moderately than a speculative premium/low cost).”

Looking at the underlying provide, Glassnode says it’s maintaining a watch on the younger cash on the market, or BTC which have solely been held for one to 6 months. According to the agency, the multi-month downward pattern of younger coin provide may very well be a sign that HODLing (maintain on for expensive life) habits is underway.

“However, since the sell-off in May, the younger coin provide has commenced a structural downtrend which signifies cash are maturing, HODLing is happening, and accumulation is probably going underway.

It is beneficial for value if younger coin provide continues to say no (previous cash dormant and younger cash maturing). Conversely, massive spikes in younger coin provide recommend renewed distribution and would favour a bearish bias.”

Source: Glassnode

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