Bitcoin networking activity remains in a bear market as buyers from the US and the EU struggle to outsmart Asian sellers.

Analysis firm Glassnode’s latest weekly Bitcoin (BTC) network activity report shows that the price of the largest cryptocurrency by market value remains in the same narrow $ 5,000 range from $ 37,680 to $ 42,312. However, the price of the asset rose sharply on Tuesday, which led to prices rising to a two-week high.

Overall, according to Glassnode’s weekly review, the network is in a remarkably calm state:

“Bitcoin network use and network activity remain in the bear market, albeit improving.”
The study concluded that there is a clear difference in the behavior of the average bitcoin investor according to its geography. In particular, US and EU investors tend to be buyers, while Asian investors tend to be sellers. This trend has continued since March 2020, with the exception of November last year, when both sides actively bought.

In particular, the Glassnode researcher and author of the “Checkmate” report noted that US and EU investors have offered general bid support over the past two years, with active purchases between the end of 2020 and the beginning of 2021, while “both regions declined during May. and July. ” Buyers in the EU are currently the most supported.

On the other hand, Glassnode stated that Asian markets generally provided less buyer support in the first quarter of the third quarter of 2021 and are currently under strong sales pressure. However, Su Zhu, co-founder of the crypto-investment company Three Arrows Capital, tweeted on Tuesday that “Asia is placing an unconditionally high bid on BTC”, which indicates that the short-term price increase intraday was caused by Asian traders.

Several calculations on the chain indicate that the bear market is in full swing. The number of new items or new wallets that are not linked to existing wallets has increased gradually since mid-2021. This is a bear market pattern that appeared in the same way from January 2018 to the first half of 2020. There are currently around 110,000 new items created on the Bitcoin network every day. .

In a bear market, the growth of new companies increases slowly and steadily. During periods of upturn, growth in new companies sees significant peaks, such as in January 2018 and January 2021.

Transaction volumes over $ 1 million in remittances continue to follow a sharp downward trend since peaking in November last year. “A sharp fall could signal a fall in network usage,” Glassnode warned, further indicating that we are entering a bear market.

Related: Bitcoin Can Easily See $ 30K With Stocks Due To 30% Fall In 2022 – Analyst

As reported last week, long-term (LTH) owners increased the sales pressure, but the total LTH supply remained flat when an equal proportion of short-term (STH) owners were relieved and the trend continued. The LTH offer consists of coins that have not moved for at least 155 days.

Source: CoinTelegraph