Bitcoin (BTC) Remains in a Bear Market Based on On-Chain Metrics, Says Crypto Analytics Firm Glassnode

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Bitcoin (BTC) Remains in a Bear Market Based on On-Chain Metrics, Says Crypto Analytics Firm Glassnode

Crypto analytics firm Glassnode says that Bitcoin (BTC) is still in the bear market despite a recent relief rally.

The market intelligence firm said that the on-chain metrics suggest that the recovery is still a long way off for Bitcoin as its short-term price rise was followed by a sell-off.

The adjusted SOPR (aSOPR), which reflects the ratio between the sell and buy prices of the flagship crypto asset, suggests that investors are looking to recoup their investments.

“Bitcoin aSOPR continues to face strong resistance at the 1.0 breakeven point.

This suggests that BTC investors are taking profits during bear market rallies and spending coins at their cost to just “get their money back.”

Source: glassnode

The supply of long-term Bitcoin investors, or those who have held their assets for more than 155 days, also tends to decrease during the bull market, but Glassnode says that is not currently the case, as indicated by the Long-Term Holder Supply in Loss Metric.

“The long-term holding supply of losing Bitcoin remains near all-time cycle highs, with just 193 of 4,421 trading days (4.4%) ending with larger BTC-denominated losses.

This suggests that LTH’s profitability is under extreme bear market stress.

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Source: glassnode

In a recent newsletter, Glassnode said that Bitcoin’s recent uptrend is not attracting investors. The crypto asset sees neither the drivers who can support its rally.

“The current market structure is certainly comparable to the late 2018 bear market, but still lacks the macro trend reversal in profitability and demand inflow required for a sustained uptrend.

Therefore, the consolidation phase of the current cycle’s bottom is very likely, as Bitcoin investors attempt to lay a stronger foundation, subject of course to continued uncertainty and adverse events in the macro backdrop.

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Feature image: Shutterstock/Vadim Sadovski/Fotomay

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