Brian Njuguna
01 November 2022 at 08:10
With Bitcoin trading above the psychological price of $20,000, Glassnode released its weekly on-chain report titled “Hammering Out The Bottom,” which scrutinizes the dangers and dangers that may lie ahead.
With Bitcoin (BTC) trading above the psychological price of $20,000, Glassnode did just that Released Her weekly report on the series, titled 'Hammering Out The Bottom', examines the risks and dangers that may lie on the road ahead.
The market insight provider stated the following:
“Bitcoin has risen back above the $20,000 level this week, coming off a low of $19,215, and traded as high as $20,961. After consolidating in an increasingly tight range since early September, this is the first comfortable rally since Several months.
Source: Glassnode
Bitcoin has risen 6.6% in the past seven days to $20,626 during intraday trading, according to CoinMarketCap.
Since the realized price is the average acquisition price for each coin, Bitcoin is currently approaching the lower side of the realized price set at $21,111. A break above that level would indicate notable strength.
Source: Glassnode
The process of redistribution of wealth is still ongoing
During the downstream discovery phase, decreasing investors' profitability usually results in a redistribution of coin wealth as weaker hands succumb to severe financial pain.
Using the UTXO Realized Price Distribution (URPD) indicator, Glassnode noted that further consolidation and duration may still be needed in the current bear market because coins are trading lower than in the 2018-2019 bottom-finding phase where 22.7% of the coins were redistributed. Total supply.
The market insight provider noted:
“Performing the same analysis in 2022, we can see that around 14.0% of supply has been redistributed since the price fell below the price achieved in July, with a total of 20.1% of supply now captured in this price range.”
Although Bitcoin is preparing to break out of the bottom, the shift from bearish to bullish has not fully formed due to the lack of a convincing influx of new demand.
Meanwhile, cryptocurrency trading firm Cumberland recently highlighted that Bitcoin trading volume remains extremely large as around $50 billion worth of Bitcoin derivatives are cleared on cryptocurrency exchanges daily. Blockchain.News reported.
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