Analyst provider Glassnode reports that current on-chain indicators suggest that the bitcoin bull market may enter later stages.
On his March 22nd A week on the chain message, on-chain analytics provider Glassnode, has seen a decline in bitcoin whales despite a consistent accumulation of wallets with 1 BTC or less since March 2018.
“The continued accumulation of small holders demonstrates the willingness of HODL through volatility with a trend uninterrupted from mid-2018 until the chaos of 2020,” the report said.
Whale addresses with more than 100 BTCs were relatively flat by comparison, with the group currently holding 62.6% of the offer – an increase of just 0.87% over the last 12 months.
Based on its “Reserve Risk” metric, which is used to assess long-term holders’ confidence in the price of bitcoins, Glassnode argues that BTC is currently “transferring wealth” from long-term holders to new buyers.
The report states that bull markets generally follow a similar path of wealth transfer in three different phases, which can be used to estimate what stage the current cycle is at. The peak rated phases are the inflection points where the largest proportion is the long-term holder, or LTH, of the owned coin they are in profit.
“Similar to the Reserve Risk metric, these studies suggest that conditions are similar to the second half or later stages of the bull market.” There remains a larger relative part of the offer still held by LTH, which has only spent 9% since the expected Peak HODL. “
Glassnode is not alone in speculating that the end of the bull season may unfold, with a Chinese mining group BTC.TOP CEO Jiang Zhuoer speculation in the bull market could end in September.
Speak with local media on March 21, noted the general economic recovery amid the introduction of COVID-19 vaccines and the likely weakening interest in cryptocurrencies if the recent trend of large corporations such as Tesla and MicroStrategy adding bitcoins to their treasury reserves cease to act as likely catalysts for market reversal.
Investment manager Timothy Peterson as well he noted A recent decline in whales states, “Such movements are often, but not always, associated with bear markets.” Peterson speculated that the price of bitcoin could fall to as much as $ 25,000.