Glassnode recently published a report with several on-chain signals that could indicate a possible bearish scenario.
The cryptocurrency industry and the financial markets have had a rough few weeks. There were many reasons. Fears of escalating conflict in Ukraine, social unrest in Canada, and the Fed raising interest rates may have influenced falling prices.
Many people predicted the beginning of another bear market due to these events. Glassnode has now drawn attention to several on-chain signals that may indicate the occurrence of such a scenario.
Glassnode is a data-driven crypto analysis tool. It provides on-chain data in order to provide accurate and timely information about the cryptocurrency market. Glassnode also offers insightful market analyses and helps traders make informed decisions.
To begin with, the analytics firm emphasised that bitcoin’s on-chain activity remained static last week, which is a sign that interest in and demand for this asset are dwindling.
Second, it pointed to the number of addresses with a non-zero balance, which is usually a good indicator of retail investor behaviour. In the last 30 days, about 220,000 such wallets have been completely emptied. For comparison, when the basic cryptocurrency was listed at about 60 thousand dollars in November, non-zero addresses reached a record level of almost 39 million.
Additionally, the percentage of profit-making entities is decreasing. This was to be expected, given how far BTC has fallen from its all-time high. According to Glassnode’s estimates, 10.9 percent of Bitcoin investors amassed coins in the $33,500 to $44,600 price range.
Since most of them have entered the market in the last few weeks, Glassnode stated that they might be the first to sell their shares if the price of BTC continues to fall.
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