• Sun. Dec 10th, 2023

Glassnode Analysts Claim that Bitcoin Price might Continue to Move Downward for an Extended Period

Christian Klausen

ByChristian Klausen

Jun 11, 2021

Bitcoin price movement has put the holders out of favor for quite some time. During the past seven weeks, the flagship cryptocurrency crashed about 300% from its April ATH of $64,500. William Clemente, a data expert from Glassnode, has recently shared several indices to dissect the future behavior of the highly volatile price movement. With the help of the weekly net realized profit or loss index, he proved that most new investors have been liquidating their reserves at a loss.

Clemente also put together the Spent Output Profit Ratio (SPOR) for seven days moving average. The SPOR index is used for finding out the profit ratio that a trading entity has been able to produce in a specific time bracket. The entity adjusted readings for Bitcoin shows that it has steeped the lowest since March 2020. As per Clemente, the seller exhaustion sentiment in the market has matured to the fullest.

Bitcoin Supply Dynamics are Changing Based on the Behavior of Long Term and Short Term Traders

While the miners have hold supplying any new Bitcoin into the markets for a year, the existing supply dynamics are rapidly shifting. As noted by Clemente, the short-term sellers have been nullifying the chances of improved buying pressure created by long-term holders. Due to this paradigm shift, the long-term holders have set off selling pressure instead.

He also shared a Bitcoin supply data projection to showcase that in the current situation, if long-term holders sell rather than buying the price movement has a chance to improve. 

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Discussing the price dynamics in the light of another metric, Entity-adjusted Realized Cap, he claimed that the digital asset fetching a higher profit before has now started to realize losses. According to him, this could be translated into an increase of weak hands.

Glassnode Data Analytics Suggest that Bitcoin Price could Remain Stuck in the Trenches for a While

William Clemente, the crypto market analytics, has recently conducted a market dissection survey to find out where the market is heading. As per his findings, the long-term holders are trying to retain their positions while the short-term sellers continue to neutralize and alter this effect by cashing out in losses due to the ongoing FUD. However, the accumulation process would take some time to put reinstate the favorable market once again.

Meanwhile, analyst Josh Roger thinks that $34,640 could be a good enough support position for Bitcoin. This number is quite optimistic considering that more experienced traders like Peter Brandt have foretold a crash back to $20K. However, both Clemente and Brandt advise the Bitcoiner long position holders to show resilience. Whereas Rogers, who is looking at 24-hour market behavior, opines that a few virtual fallouts could be followed by significant pumps later on.

Christian Klausen

Christian Klausen

Christian Klausen is a talented news writer renowned for his compelling storytelling and comprehensive research. With a sharp eye for detail, his articles offer readers a thought-provoking and well-informed perspective on a wide range of current topics.

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