Bitcoin network activity on the chain still seems to be in a bear market as buyers from the United States and the European Union struggle to stay ahead of retailers based in Asia.
The latest report from Blockchain analytics firm Glassnode on the weekly activity of the Bitcoin (BTC) network shows that the price of the largest cryptocurrency by market capitalization remained firmly within the same narrow range of $ 5,000 from $ 37,680 to $ 42,312. However, on Tuesday, the property experienced a sharp jump in prices, which raised prices to a two-week high.
All in all, the network is in visible lull according to Glassnode’s weekly review:
“Bitcoin network use and chain activity remain firmly within bear market territory, although recovering.”
The research concluded that there is a marked difference in the behavior of the average BTC investor based on their geographical location. Notably, investors from the US and the EU are usually buyers, while Asian investors are usually sellers. This trend has remained consistent since March 2020 with the exception of last November when both sides were buying intensively.
In particular, a Glassnode researcher and author of the Checkmate report noted that U.S. and EU investors have offered general support for offers over the past two years with large purchases between late 2020 and early 2021, while both regions capitulated in May and July”. EU buyers are currently providing the most support.
Glassnode, on the other hand, reported that Asian markets generally offered lower support for purchases during the first to third quarters of 2021 and are currently creating strong pressure on sales. On Tuesday, however, co-founder of crypto-investment firm Three Arrows Capital Su Zhu tweeted that “Asia unironically gives the maximum offer of BTC”, suggesting that the short-term price increase that day was led by Asian-based retailers.
Several on-chain metrics suggest that the bear market is largely underway. The number of new entities – or new wallets unrelated to existing wallets – is gradually growing from mid-2021. This is a bear market pattern that took place in a similar way from January 2018 to the first half of 2020. There are currently about 110,000 new entities created on the Bitcoin network Daily.
In the bear market, the growth of new entities is growing in a slow and steady way. In bullish periods, the growth of new entities is experiencing big leaps, such as in January 2018 and January 2021.
The volume of transfer transactions worth more than $ 1 million continued to follow the steeply declining trend since its peak last November. Glassnode warned that “a severe decline could signal a reduction in network utilization,” further indicating that we have entered a bear market.
Related: Bitcoin could ‘easily see $ 30,000’ in shares due to 30% withdrawal in 2022 – analyst
As announced last week, long-term owners (LTH) have increased sales pressures, but overall supply of LTH has remained stagnant as an equal share of short-term owners ’(STH) supply has reversed, a trend that continues. The LTH stock consists of coins that have not moved for at least 155 days.