Last year, many scandals rocked the crypto industry like the collapses of Terra Luna and FTX. Bitcoin saw its value drop by 70%. But since the beginning of the year, BTC has shown renewed interest, stimulated by the banking crisis. According to analyst firm Glassnode, on-chain indicators signal the end of the bitcoin (BTC) bear market.
Bitcoin (BTC): on-chain indicators are positive
Glassnode, a crypto analytics company, released a new Youtube video about the evolution of Bitcoin. According to her, a series of on-chain quotation indicators seem to indicate the end of the bitcoin (BTC) bear market. Indeed, the queen of cryptos has seen growing momentum in terms of network usage. In particular, we note increases in active addresses and pressure on fees. Moreover, it has been above its 200-day moving average for most of 2023.
Furthermore, Glassnode points out in the video that traders start taking profits in BTC. Thus, the market absorbs these sales. The other indicator signaling the end of the bear market is the wealth balance in favor of long-term holders. For your information, the price of bitcoin (BTC) has increased by 40% in the space of three months, and is already showing signs of a major trend change.
You have to be on your guard
However, the analytics firm said there is no certainty that the BTC bear market is actually over. Despite these positive indicators, the crypto market is not yet officially in a new bull market. Nevertheless, bearish phases in the crypto market have always been followed by bullish rallies. We also note the meteoric rise in the price of bitcoin (BTC) at the beginning of the year, but it seems to be weakening for the moment.
This being the case, we can say that there is a change in trend underway. According to Glassnode, the performance of bitcoin (BTC) in 2023 contrasts sharply with that of 2022. This is how the correlation between BTC and the price of gold is increasingly high. The recent American banking crisis tends to confirm that this crypto is a real safe haven.
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