On-chain metrics point to early stage bear market, but Bitcoin HODLers seem unfazed
ambcrypto.comBitcoin, the largest cryptocurrency recently gathered some strength to push outside the resistance zone. At press time, BTC surged more than 4% to reach the $37.7k mark. This might sound decent however, the king coin suffered major blow from its previous ATH, $64k last year. Indicators still signal at a bearish trend concerning BTC.
Fear and Greed index, at the time of writing stood at 23, signalling ‘Extreme fear’. According to famed crypto trader/ analyst, Rekt Capital‘s poll on Twitter, more than 50% supported the aforementioned narrative.
<p lang=«en» dir=«ltr» xml:lang=«en»>Is #BTC still in a Bull Market or a new Bear Market?$BTC #Crypto #Bitcoin— Rekt Capital (@rektcapital) January 22, 2022
<p lang=«en» dir=«ltr» xml:lang=«en»>#Bitcoin bulls have been put firmly on the back-foot, with prices cut in half since the Nov ATH.In our latest analysis we seek to define whether #Bitcoin has entered a prolonged bear, using investor psychology, behaviour, and network profitability.https://t.co/4N1FKeHZHM
— glassnode (@glassnode) January 24, 2022
Glassnode, a leading on-chain metric analysis platform published their latest “The Week On-Chain” newsletter to highlight this possible bearish trend.
It established the “likelihood that a prolonged bear market is in play” by “using historical investor behavior, and profitability patterns” as guide. One thing’s for sure, the recent crash was severe, and “such a heavy drawdown is likely to change investor perceptions and sentiment at a macro scale,” the report added.
Well, According to Glassnode, the said crash was “the second worst sell-off since the 2018-20 bear market, eclipsed only by July 2021, where the market fell -54% from the highs set in April.”
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