{"id":480336,"date":"2022-08-02T08:52:00","date_gmt":"2022-08-02T05:52:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/bitcoin-network-activity-decline-suggests-longer-bear-market-glassnode\/"},"modified":"2022-08-02T08:52:00","modified_gmt":"2022-08-02T05:52:00","slug":"bitcoin-network-activity-decline-suggests-longer-bear-market-glassnode","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/bitcoin-network-activity-decline-suggests-longer-bear-market-glassnode\/","title":{"rendered":"# Bitcoin network activity decline suggests longer bear market: Glassnode"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a2e73c6b936a\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a2e73c6b936a\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/bitcoin-network-activity-decline-suggests-longer-bear-market-glassnode\/#%E2%80%9D_Bitcoin_network_activity_decline_suggests_longer_bear_market_Glassnode_%E2%80%9C\" >&#8221; Bitcoin network activity decline suggests longer bear market: Glassnode &#8220;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Bitcoin_network_activity_decline_suggests_longer_bear_market_Glassnode_%E2%80%9C\"><\/span>&#8221; Bitcoin network activity decline suggests longer bear market: Glassnode &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div class=\"post-content\" data-v-28d77a7a>With several on-chain metrics for Bitcoin (BTC) still in a bearish range, a continuation of the recent price recovery will require increased demand and fees spent over the network, says Glassnode.\u00a0<\/p>\n<p>The assessment of mediocre market growth over the past week came from blockchain analysis firm Glassnode in its latest \u201cThe Week On Chain\u201d\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/insights.glassnode.com\/the-week-onchain-week-31-2022\/\">report<\/a> on Monday.<\/p>\n<p>In it, analysts pointed to sideways growth in transactional demand, active Bitcoin addresses remaining in \u201ca well defined downward channel\u201d and lower network fees as reasons to temper investors\u2019 excitement about the 15% spike in BTC price over the past week. However, BTC is currently down 2% over the past 24 hours, trading below $23,000 to $22,899,\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.coingecko.com\/en\/coins\/bitcoin\">according<\/a> to CoinGecko.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p dir=\"ltr\" lang=\"en\"><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/hashtag\/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw\">#Bitcoin<\/a> and <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/hashtag\/Ethereum?src=hash&amp;ref_src=twsrc%5Etfw\">#Ethereum<\/a> have rallied strongly off the bottom, reaching above the Realized Price.<\/p>\n<p>Attention now turns to whether this is a bear market rally, or whether the fundamentals are following through in support.<\/p>\n<p>Read more in The Week On-chain <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/taOkbeVlyv\">https:\/\/t.co\/taOkbeVlyv<\/a><\/p>\n<p>\u2014 glassnode (@glassnode) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/glassnode\/status\/1554129822544166914?ref_src=twsrc%5Etfw\">August 1, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>The report begins by highlighting the characteristics of a bear market, which includes a decline in on-chain activity and a rotation from speculative investors to long-term holders. It suggests that the Bitcoin network is still demonstrating each of those traits.<\/p>\n<figure><img loading=\"lazy\" decoding=\"async\" width=\"1600\" height=\"922\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-08\/fa1f471f-7447-400b-9f55-5f1ca0c286f0.png\"><\/figure>\n<p>Glassnode wrote that a decline in network activity can be interpreted as a lack of new demand for the network from speculative traders over long-term holders (LTHs) and investors who have a high level of conviction in the network\u2019s <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/technology\/\" data-internallinksmanager029f6b8e52c=\"4\" title=\"Technology\" target=\"_blank\" rel=\"noopener\">technology<\/a>. The report states:<\/p>\n<blockquote><p>\u201cWith exception of a few activity spikes higher during major capitulation events, the current network activity suggests that there remains little influx of new demand as yet.\u201d<\/p><\/blockquote>\n<p>In contrast to last week, when a significant level of demand <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>eared to be established at the $20,000 level for BTC and creating a floor, the additional demand needed to sustain any further price increases is not observable. Glassnode refers to the steady decline in active addresses as a \u201clow bear market demand profile,\u201d which has been in effect essentially since last December.<\/p>\n<figure><img loading=\"lazy\" decoding=\"async\" width=\"1600\" height=\"922\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-08\/205ded2d-5c2e-448b-8a6b-3b056a0615ea.png\"><\/figure>\n<p>The analysis observed similarities between the current network demand pattern and the one established in the 2018-2019 period. Similar to the previous cycle, network demand dried up after the April 2021 all-time high in BTC price. There was a notable recovery in demand leading up to the following November as prices recovered to a new ATH.<\/p>\n<p>However, since last November, demand has been on a downward trend, with a major spike down during the mass sell-offs in May:<\/p>\n<blockquote><p>\u201cThe Bitcoin network remains HODLer dominated, and as yet, there has not been any noteworthy return of new demand.\u201d<\/p><\/blockquote>\n<p>Glassnode added that the poor demand from anyone other than dedicated Bitcoin enthusiasts is forcing network fees into \u201cbear market territory.\u201d Over the past week, daily fees amounted to just 13.4 BTC. By contrast, when prices reached ATH last April, daily network fees topped 200 BTC.<\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>Bitcoin bulls defend $23K amid warning bear market rally &#8216;alive and well&#8217;<\/em><\/strong><\/p>\n<p>Assuming fee rates increase to any noteworthy degree, Glassnode suggests that it could mean demand is on the rise, helping to sustain further \u201cconstructive structural shift\u201d in Bitcoin network activity:<\/p>\n<blockquote><p>\u201cWhilst we have not seen a notable uptick in fees yet, keeping an eye on this metric is likely to be a signal of recovery.\u201d<\/p><\/blockquote>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template>\n<\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/bitcoin-network-activity-decline-suggests-longer-bear-market-glassnode\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; Bitcoin network activity decline suggests longer bear market: Glassnode &#8220; With several on-chain metrics for Bitcoin (BTC) still in a bearish range, a continuation of the recent price recovery will require increased demand and fees spent over the network, says Glassnode.\u00a0 The assessment of mediocre market growth over the past week came from blockchain&#8230;<\/p>\n","protected":false},"author":1,"featured_media":480337,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDgvMjI0OGVmODEtODY4NS00MTE4LTkzNTAtZDYzNGU1NWVmZmFjLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[79806,74862,81951,74937,74894],"class_list":["post-480336","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-analysis","tag-bitcoin","tag-bitcoin-analysis","tag-bitcoin-price","tag-blockchain"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/480336","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=480336"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/480336\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/480337"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=480336"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=480336"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=480336"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}