{"id":408452,"date":"2022-02-22T08:15:28","date_gmt":"2022-02-22T05:15:28","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/on-chain-metrics-hint-at-a-bearish-outlook-for-bitcoin\/"},"modified":"2022-02-22T08:15:28","modified_gmt":"2022-02-22T05:15:28","slug":"on-chain-metrics-hint-at-a-bearish-outlook-for-bitcoin","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/on-chain-metrics-hint-at-a-bearish-outlook-for-bitcoin\/","title":{"rendered":"# On-chain metrics hint at a bearish outlook for Bitcoin"},"content":{"rendered":"

“# On-chain metrics hint at a bearish outlook for Bitcoin <\/strong>”<\/p>\n

Blockchain analytics provider Glassnode has depicted a bearish scenario for Bitcoin as on-chain metrics suggest increased selling pressure is imminent.<\/p>\n

In its weekly analytics report on Feb. 21, on-chain metrics firm Glassnode said that Bitcoin bulls \u201cface a number of headwinds,\u201d referring to increasingly bearish network data.<\/p>\n

The researchers pointed at the general<\/a> weakness in mainstream markets alongside wider geopolitical issues as the reason for the current risk-off sentiment for crypto assets.<\/p>\n

\u201cWeakness in both Bitcoin, and traditional markets, reflects the persistent risk and uncertainty associated with Fed rate hikes expected in March, fears of conflict in Ukraine, as well as growing civil unrest in Canada and elsewhere.\u201d<\/p><\/blockquote>\n

It added<\/a> that as the downtrend deepens, \u201cthe probability of a more sustained bear market can also be expected to increase.\u201d Bitcoin is currently trading down 47% from its November all-time high and has been down-trending for the past 15 weeks.<\/p>\n

A lack of on-chain activity is one of the distinct signals of a bearish Bitcoin market. The number of active addresses or entities is currently at the lower bound of the bear market channel which depicts on-chain activity during periods of sideways or down trending markets, suggesting a decrease in demand and interest.<\/p>\n

Active on-chain entities: Glassnode<\/em><\/figcaption><\/figure>\n

Glassnode reported that around 219,000 addresses have been emptied over the past month suggesting that it could be the beginning of a period of outflows of users from the network.<\/p>\n

It calculated a short-term holder realized price on an aggregate cost basis which worked out at $47,200 meaning that the average loss at current prices is around 22% for those still holding the asset. <\/p>\n

\u201cThe longer that investors are underwater on their position, and the further they fall into an unrealized loss, the more likely those held coins will be spent and sold.\u201d<\/p><\/blockquote>\n

There were several other measurements of long and short-term on-chain positions culminating in the conclusion that there is a total of 4.7 million BTC currently underwater. More than half of it, or 54.5% is held by short-term holders (less than 155 days), \u201cwhom are statistically more likely to spend it,\u201d it added.<\/p>\n

Related:<\/em><\/strong> <\/em><\/strong>\u2018Coin days destroyed\u2019 spike hinting at BTC price bottom? 5 things to watch in Bitcoin this week<\/em><\/strong><\/p>\n

Crypto Twitter<\/a> has also been awash with bearish sentiment over the past few days and the Bitcoin Fear and Greed Index<\/a> is currently registering a 20 \u2014 \u201cextreme fear\u201d.<\/p>\n

\n

Not everything will last in crypto.<\/p>\n

Quick thoughts on the fallout of a bear market:<\/p>\n

\u2014 Jason Choi (@mrjasonchoi) February 21, 2022<\/a><\/p><\/blockquote>\n