Recent data from Glassnode suggests that Bitcoin whales have played a significant role in the latest BTC downturn. The number of Bitcoin addresses in loss has hit a new monthly record. However, two on-chain indicators propose that the short-term crypto dip might have ceased. But for a bullish trend to emerge, an increase in open interest is needed. So, has the Bitcoin price fall truly come to a halt? On-chain data provides compelling signals.
Scrutinizing Bitcoin’s State Post-Downtrend
After enduring a week of decline, it’s prudent to inspect Bitcoin’s status. Metrics disclose the impact of recent events on BTC accumulations and demand. The tally of addresses in profit or loss serves as a vital gauge for Bitcoin analysts. It offers a rough approximation of how the recent downturn has affected investors and can be used to gauge the effect of selling pressure.
According to a fresh report from Glassnode, the count of Bitcoin addresses in loss has hit a new monthly peak. This indicates that Bitcoin’s breakeven point is above the present level, reinforcing the short-term focus. Concurrently, the supply of BTC active for over ten years has hit a new all-time high. Based on the above ATH signal, the short-term dip may have concluded.
The Aftermath of the Crash and the Role of Whales
Digging further, it’s clear that the number of addresses in loss has hit a new monthly peak. This data effectively determines the extent of the downturn’s impact on BTC holders. However, it doesn’t shed light on the aftermath of the crash. Evaluating whale activity on Glassnode might give a clue about the market’s next move.
The number of addresses holding over 1,000 and 10,000 BTC has significantly dwindled. This substantiates that Bitcoin whales were instrumental in the selling pressure observed between August 14-17. The latest findings support the belief that the initial downturn has ceased as whale sales have also slowed down. But when will the rise begin?
Accumulation, Exchange Flow Data, and Open Interest
Looking at accumulation, Bitcoin’s exchange flow data reveals that the volume of BTC exiting exchanges surpasses the entries. Net coin flow from exchanges to private wallets indicates accumulation. However, there was a sharp decline in open interest, which remained stagnant at the bottom along with the price. A surge in open interest in the upcoming days could be a potent leading signal for the price to begin escalating again.
For those interested in keeping a close eye on these metrics and more, the cryptoview.io application provides a comprehensive view of the cryptocurrency market.Start now using our tools for free. Stay informed about the latest cryptocurrency news by enabling notifications for our Twitter account and Telegram channel.
