Bitcoin Approaching Critical Juncture, Glassnode Warns
Analytics firm Glassnode is sounding the alarm, indicating that Bitcoin (BTC) is on the verge of a crucial moment that has historically signaled the end of a bull market. The company is closely monitoring Bitcoin’s short-term holder (STH) cost basis, a key metric that tracks the average price at which investors who have held their BTC for less than 155 days acquired their coins.
Based on historical data, Glassnode suggests that Bitcoin tends to transition into bear territory when its price falls below the value of this metric. According to Glassnode’s analysis, the current BTC price is approximately 7% above the STH cost basis of $88,135. If the price stabilizes below this level, it could indicate diminishing sentiment among new investors, often signaling a shift in market trends.
As of the latest update, Bitcoin is trading at $94,425. Glassnode also highlights the behavior of long-term holders, investors who have held their BTC for 155 days or more. The analytics firm observes that this group is selling off their Bitcoin at a significantly rapid pace. While the extreme distribution among long-term holders does not necessarily signify the end of the Bitcoin bull market, it is a notable trend to monitor.
Glassnode concludes its analysis by pointing out that nearly all long-term holders are currently in a profitable position. This is evidenced by the fact that Bitcoin long-term holder supply in loss remains at 0%. While the rate of distribution among long-term holders may have peaked, it does not necessarily indicate the definitive conclusion of the current market cycle.
As the market continues to evolve, it is essential to stay informed and monitor these key metrics closely. Glassnode’s insights provide valuable data for investors seeking to navigate the volatile cryptocurrency landscape.
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