Analytics provider Glassnode reports that current indicators on the chain are indicating that a bullish Bitcoin market could enter later stages.

In its 22nd week series report, seller analyst Glassnode reported a drop in bitcoin whales despite a steady build-up of wallets with 1 Bitcoin or less since March 2018.

The report stated, “The continued congestion of small shareholders indicates HODL’s readiness due to fluctuations with the continuing trend from mid-2018 to chaos in 2020.”
Whale titles with more than 100 Bitcoins have been relatively stable by comparison: the group currently holds 62.6% of the supply – an increase of just 0.87% over the past 12 months.

Based on the “reserve risk” calculation used to assess long-term currency holders’ confidence in the price of bitcoins, Glassnode argues that bitcoin’s “wealth transfer” from bitcoin holders in the long term to ongoing new buyers.

Reserve risk: glass assembly
The report says that emerging markets typically follow a similar path of wealth transfer in three different stages that can be used to gauge the stage of the current cycle. The peak freeze phases are turning points when the majority of the currency held by long-term contract holders, or LTH, is profitable.

“Similar to the reserve risk calculation, these studies show that conditions are similar for the second half of the year or later stages of the beef market. LTH still maintains a larger proportional share of supply, having spent only 9% since the estimated HODL peak.”
Glassnode is not the only one speculating that the end of the rising season may be threatening, with the head of the Chinese BTC.TOP mining pool, Jiang Zhuer, indicating that the beef market may end as early as September.

Speaking to local media on March 21, he referred to the general economic recovery after the introduction of the COVID-19 vaccine and the possible decline in interest in cryptocurrencies if the recent trend of large companies like Tesla and MicroStrategy to add bitcoins to their government reserves stops. . As potential catalysts for a market reversal.

Investment manager Timothy Peterson also noted the recent decline in whale numbers, saying, “These moves are often tied to bear markets, but not always.” Peterson suggested that the price of Bitcoin could fall by as much as $ 25,000.

Source: CoinTelegraph