Bitcoin Heading Towards Full Detox of Speculative Interest: Glassnode
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Bitcoin’s move above the desired psychological level of $20,000 came after a nearly 10% gain in the past 24 hours.
This was followed by a mass profit-taking session as traders anticipating the threshold started selling their bags, according to Santimenti data.
📈 Many traders were apparently waiting for the $20,000 threshold to start selling bags. Like #Bitcoin crossed back above this psychological level, mass profit taking followed. Now we will find out if those eager to sell will regret their decisions. https://t.co/k5o3UpZGfY pic.twitter.com/kXXbCSz05Y
— Santiment (@santimentfeed) September 27, 2022
- Despite a certain segment shedding their Bitcoins, HODlers seem to have remained steadfast, while several metrics are now pointing towards a full-cycle detox.
- Glassnode’s latest weekly report noted that a number of investors holding old coins have been holding on to their tokens “refusing to spend and divest their positions on any meaningful scale.” It further noted,
“While this is constructive in that it shows HODLer conviction, against such a weak demand profile, such a finding can best be interpreted as HODLers bunkering down for future storms.”
- The HODling trend has remained intact even after the uncertainty of the global markets, when the wealth of mature coins was at an all-time high.
- The Bitcoin market is entering a phase of relative stability that marks the approach of a complete detox of speculative interest and may possibly be approaching a base level of user equilibrium, as the median transaction volume meter appears to be steadily leveling off.
- After last year’s Great Miner Migration, there has been a significant reset in network adoption, which recently collapsed.
- This basically highlighted that a “significant recovery” may not be underway, and the decline in the flow of new users to the network is palpable.
- Another factor holding back the recovery is the retail foreclosure seen after the move and still in place, similar to the bear market of 2018.
- Further examining the network activity for Miner Revenue payments, Glassnode found that the Bitcoin network is still in an extended muted payment system, confirming that demand recovery is not yet underway.
- For now, the report suggests that Bitcoin’s online activity remains a barren wasteland, as New Entity Adoption fell below the bottom of the cycle, coinciding with the complete exit of retail participation.
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