Bitcoin has failed to surge past $30,000 after teasing a possible jump to higher levels on the 18th of July when prices hit a daily high of $32,399.
Market anxiety heightens as Bitcoin staggers downwards
After closing at a low of $31,900 yesterday, it was clear that the bears rejected prices at $33,000, causing the market to trade further downwards, as Bitcoin now sits at a press time price of $32,513.
Investors like Lark Davis are wondering; “30k bitcoin has failed to hold, how low will we go? And Glassnode’s most recent on-chain analysis attempts to answer that question.
There’s a major market division, Per Glassnode’s observations, many significant factors from the institutional market have played a major role in the Bitcoin bear market. With institutional demand flows becoming a “necessary source of capital inflows to reach and sustain higher valuations,” and Grayscale’s GBTC prices trading at a discount price estimated between “-11.0% and down to -15.3%,” persistence in this downwards price movement mostly points to a “lackluster demand, and can also attract capital away from spot BTC markets.”
Other key bearish metrics to note include the on-chain unrealized losses hitting 6.2 million. On-chain volume is also significantly low and Bitcoin network usage for value transfer is also on the low end. The market is also said to be “trading at the low end of a high on-chain volume cluster with very little cost basis support between $31.0k and $18.8k.”
Ultimately, the data shows that the market is headed sideways, as Glassnode explains below ;
“As the market tests the lows of a significant on-chain support zone, transaction activity remains depressed and HODLing behaviour shows remarkable resilience.
We have an extremely divided market, and one with a likely expansion of volatility just around the corner.”
There is still a bullish case for Bitcoin
It’s not all bad news for Bitcoin after all, as Glassnode sees a promising end, as long-term holders remain unfazed by the intense volatility, as unliquidated coins continue to grow, causing supply squeeze to come from “much higher base than the 2018-19 bear.”
Miners are also in a stage of net accumulation, which suggests that the selling pressure from migration is being contained by miners in profit. Lastly, as fewer entities are destroyed, net entity growth is in a positive zone. All of the above in Glassnode’s words “demonstrates the remarkable conviction of BTC holders to weather extreme volatility.”
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