- A look at what recent on-chain findings could signal in terms of Bitcoin’s next move.
- Bitcoin’s selling pressure slowed and paved the way for some accumulation, but it may not be out of the woods just yet.
It would be wise to look at the state of Bitcoin [BTC] especially after closing out a bearish week. The stats can provide deeper insights into how recent events have affected demand from BTC holdings.
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The number of addresses in profit or loss is an important metric for Bitcoin analysts. It provides a rough estimate of how investors have been affected by the recent bearish conditions. It can also be used to evaluate the impact of sales pressure.
According to a recent Glassnode alert, the number of lost Bitcoin addresses has just hit a new monthly high.
📈 #Bitcoin $BTC Number of addresses in loss (7d MA) just hit 1-month high of 15,341,132,768
View statistics:https://t.co/s2ciFMlDcX pic.twitter.com/uF1ye6RScD
— glassnode alerts (@glassnodealerts) August 19, 2023
The above means that Bitcoin’s breakeven point is above its current level and confirms its short-term focus. Meanwhile, the amount of BTC last active for 10 years has risen to a new ATH. This suggests that long-term holders have not changed their perspective despite the hard crash.
📈 #Bitcoin $BTC Amount of the last active supply > 10 years just reached an ATH of 2,897,705,189 BTC
View statistics:https://t.co/lBBwEqVviB pic.twitter.com/en0bYHRa1K
— glassnode alerts (@glassnodealerts) August 19, 2023
Can Bitcoin Secure a Bullish Robust Bullish Demand?
When we dove deeper, we found that the number of addresses lost just hit a new monthly high. These findings are excellent at identifying the magnitude of the bearish outcome for BTC holders. But those findings do not point to the subsequent outcome after the crash.
Perhaps an assessment of the whale activity on Glassnode can provide insight into whether the market is taking the next step. Will it bounce back slowly or quickly, and is there more chance of a downside? Well, addresses with over 1,000 and over 10,000 BTC dropped significantly. This confirms that Bitcoin whales contributed to the selling pressure from August 14 to 17.
Source: Glassnode
Bitcoin traders should note that the latest findings indicate that the whale selloff has leveled off for now. As such, Bitcoin may enjoy some relief from more downsides. On the other hand, the same whale category did not record a sharp bounce.
How much are 1,10,100 BTC worth today
In terms of accumulation, Bitcoin exchange flow data shows that the amount of BTC flowing out of the exchanges exceeded the inflow. A net flow of coins from exchanges to private wallets is a sign of accumulation.
Source: Glassnode
Open interest in Bitcoin options has fallen significantly since mid-August. However, it also hasn’t bounced back in a way that suggests the bulls are poised for a strong comeback. This could be a signal that the market is not yet clear in terms of recovery.
