Bitcoin bull market over? Data from Glassnode provide answers

After Bitcoin (BTC) has recorded its worst daily loss in over a month, to stabilize the crypto-currency now 54.000 US-Dollar – signs of the end of the bull market?

Bitcoin has experienced a strong correction. Within the last 24 hours, the price of the Cryptocurrency fell on to 4.81 percent.

To vary the editorial deadline Bitcoin to 54.000 US-Dollar brand. Many crypto newcomers to ask yourself whether the Bitcoin rally is over, but a recently published report by the crypto analysis firm Glassnode draws a different conclusion.

BTC-asset transfer from the Large to the Small

In “The Week on Chain” Report of 22. March has found Glassnode, that there is currently a BTC redistribution of long-term investors to new investors. Since March 2018, the Bitcoin addresses that hold BTC or less, have increased their share of the total BTC supply to 5.2 percent. Three years ago, this group of investors held only 3.97 per cent of the total Bitcoin supply.

This is a Trend now since the middle of 2018 and has not slowed down even after the Corona-Crash-in March 2020. At the same time, Wal-addresses hold more than 100 BTC has risen in the last 12 months, only 0.87 percent. Overall, these large investors keep up with 62.6 percent but still the lion’s share of the total Bitcoin supply.

“Bitcoin is in a later stage of the bull market”

In addition, Glassnode uses the so-called Reserve-Risk indicator in order to assess the confidence of long-term BTC-investors in relation to the course.

The graph shows the Reserve risk-oscillator. This is currently at a value of 0.008, wherein prior periods, which were above this value are highlighted in blue. In the past, the bull went cycles to the end, if the value is greater than 0.02. In addition, the Chart shows that long-term investors sell their Coins, and when the Reserve risk is rising, a transfer of Assets from long-term holders to new buyers.

The bull market is not over, according to Glassnode, as critical not have occurred long-term sell signals at the Moment. Nevertheless, stresses the company that we are currently in a Phase similar to the second stage or a later stage of past bull markets.

Ki Young-Ju, CEO of the South Korean analysis of the company crypto Quant, considers it unlikely that Bitcoin experienced a quick recovery.

It might take some time before Bitcoin makes another jump upwards. It is clear that we will not see a huge increase of 20 percent.

It was one of the On-Chain Data among other things, show that there is currently too little purchasing power on crypto-exchanges, to push the price further up. Nevertheless, he is as well as Glassnode convinced that this Bullrun is not over yet.