- Glassnode’s analysis looked into the market behavior of buyers and sellers.
- It is clear from the statistics that short-term accumulation activity is declining.
Recent data from Glassnode reveals that purchasers will soon dominate the Bitcoin market. According to the findings, the market may be on the verge of a major selling event. Therefore, the occurrence of a capitulation event indicates that sellers may leave the market as buyers become more active.
Short-term Accumulation Decline
Glassnode’s analysis looked into the market behavior of buyers and sellers to predict Bitcoin’s future trend. As a result, the digital asset price is now in a delicate position. It is clear from the statistics that short-term accumulation activity is declining. Between October 2021 and January 2022, the measure indicated a faster accumulation rate than usual. However, due to the continued global tensions, the accumulation trend has now grown unstable.
Investors are also repurposing old currencies kept in inactive digital wallets. Coin-day, a system that analyses the average time coins sit inactively, allowed researchers to learn. As a result, coins older than six months accounted for 5% of overall expenditure. Glassnode’s research reveals that Short-term holders (STH) have a smaller amount of coins. Additionally, 82% of STH users are losing money, causing the STH supply to hit a record low.
The bitcoin market has gained some ground in the recent 24 hours. The market leader, Bitcoin, climbed by one percent, while Ethereum increased by 1.45 percent. Since last week, Bitcoin has been trading in a narrow range. As of late, Bitcoin has been steadily rising, but it has yet to break above the $40,000 barrier. Bitcoin (BTC) is now trading at $39,252.
