On-chain metrics from the crypto analytics firm Glassnode indicate that Bitcoin (BTC) may experience sideways movement or further correction due to decreasing buying pressure. The firm’s analysis shows a significant drop in the “Hot Capital,” which fell by 66.7% from its peak in December. Additionally, diminished exchange volume and low funding rates suggest reduced demand from aggressive buyers. Bitcoin is currently trading at approximately $92,579, down nearly 3% in the last 24 hours and over 4% in the past week. As BTC remains more than 14% lower than its all-time high, the absence of new Market catalysts points towards potential consolidation or further corrections in the near term.
On-Chain Metrics Indicate Potential Bitcoin Price Stability
Recent analysis from the crypto analytics firm Glassnode shows that Bitcoin (BTC) may be headed for a period of sideways movement or further corrections. This insight comes amid a notable decline in recent buying pressure.
According to Glassnode, there has been a significant drop in BTC’s short-term demand momentum. The firm’s report on the social media platform X highlights that “Hot Capital,” which refers to capital revived over the past week, has plummeted by 66.7%. This figure dropped from its December peak of $96.2 billion to just $32 billion.
Glassnode also notes a diminishing trend in exchange volume and low funding rates, further suggesting a decrease in demand. The 30-day moving average of exchange volume is approaching the 365-day average, indicating weakened capital flows since December’s Market peak. Moreover, the funding rates in key markets remain below the neutral level of 0.01%, showing a lack of enthusiasm among aggressive buyers.
Without an immediate catalyst to boost Market interest, Glassnode warns that the decreasing short-term demand may result in prolonged price stagnation or an increased probability of additional corrections.
As of now, Bitcoin is trading around $92,579. This top-ranking cryptocurrency has seen nearly a 3% drop in the last 24 hours and more than a 4% decline over the past week. It remains over 14% below its all-time high of approximately $108,135 set in December.
In summary, if current trends continue, Bitcoin could be entering a phase of consolidation or further declines unless new factors invigorate the Market.
Stay informed on Bitcoin’s price action and trends by subscribing to updates from trusted crypto sources.
What does Glassnode say about Bitcoin right now?
Glassnode, a well-known crypto analytics firm, suggests that Bitcoin may be showing signs of consolidation or could face a further price drop. They analyze on-chain metrics to understand Market trends.
What does “consolidation” mean for Bitcoin?
Consolidation refers to a period where the price of Bitcoin stabilizes and moves sideways instead of making significant increases or decreases. This can indicate a pause in trading activity.
What are the signs of a potential price correction?
Glassnode has identified certain on-chain metrics that might hint at a possible price correction for Bitcoin. These include changes in trading volume, wallet activity, and Market sentiment.
Should investors be worried about these metrics?
Not necessarily. While these metrics suggest caution, markets can be unpredictable. Investors should stay informed and consider multiple factors before making any decisions.
How can I keep track of Bitcoin’s performance?
You can use tools and resources from crypto analytics firms like Glassnode, or follow crypto news websites. Keeping an eye on on-chain metrics can help you understand Bitcoin’s current trends better.
