Bitcoin May Continue to Fall – Glassnode

Glassnode’s analysts came to the conclusion that due to the possible increase in the Fed’s key rate and the unstable geopolitical situation in the world, the bearish sentiment prevails in the cryptocurrency market.

According to the analytics company, the number of active Bitcoin addresses has decreased significantly, indicating a decrease in demand for the asset. And there is also a clear increase in the share of hodlers since 2018.

Of all Bitcoin investors, only 65.7-76.7% make profit. More than 10% of the coins were purchased at prices ranging from $33,500 to $44,600. If the price of Bitcoin recovers, selling pressure may increase.

The unrealized loss was incurred by the owners of 4.7 million BTC. 54.5% or 2.56 million BTC are owned by short-term investors (coin holding period is less than 155 days).

Short-term investors purchased Bitcoins at an average price of $47,200. At the time of writing, Bitcoin is trading at $37,000, and their unrealized loss is 21.6%.

The first metric is above the Liveliness price, which reflects the fair price of hodlers, at $38,600. The bearish periods of 2013-2014 and 2018 ended when these moving averages recrossed. Therefore, there is a possibility of further price reduction.

To reduce the risks of a continuation of the downtrend, the price of Bitcoin should approach the range of $42,000-$50,000.

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