Research firm Glassnode published its weekly report for Bitcoin and announced that Bitcoin has been in the bullish region for 18 weeks. Glassnode team, who examined the drop in Bitcoin price last week, stated that Bitcoin is in good shape despite this decrease and will continue to gain value in the medium term.
While Bitcoin continues to test the $ 11,000 level, analysts are undecided about what direction BTC will move. The Glassnode team, trying to find an answer to this question, examined the general situation of Bitcoin in this week’s report. Glassnode, which includes criteria such as network status and liquidity, concluded that Bitcoin is still in the bullish region as a result of this research.
Glassnode Report Highlights
- The overall state of the network: A decrease was observed in the growth rate and activity of the Bitcoin network compared to last week. Bitcoin, which scored 74 points out of 100 last week, was only able to get 64 this week. The decrease of new addresses in the Bitcoin network; This caused the growth rate of the network to decrease by 8 points. The decrease in the total number of transactions resulted in a 10 point decrease in network activity.
- Liquidity: Liquidity in the market increased by 1 point compared to last week to 56 points. As there is less money entering the stock markets, a decrease in the trade volume has been observed. However, what increased liquidity was the transactions made within the Bitcoin network (on-chain).
- Investor perception: The perception in the market has improved by 2 points per week to 45. The main reason for this is that short-term BTC investors made mass sales and profits last week.
All these data actually show that Bitcoin is still doing well in many ways. As a result of these observations, the Glassnode team announced that Bitcoin is still in the bullish region. In addition to Bullish, Bitcoin, which can enter regions such as bearish and “transition phase”, has been showing a bullish performance for 18 weeks.
Will it cause the price to rise?
The correlation between Bitcoin and the S&P 500 continues to make itself felt today. Glassnode; This correlation is attributed to the difficulty of Bitcoin exceeding the $ 11,000 threshold for a while. But Bitcoin, which is now thought to attract the attention of traditional investors, can start to gain value thanks to this trend.
According to Glassnode research, Bitcoin can chart an upward trend in the medium term, thanks to both its limited supply and a growing user base. Stating that the number of active addresses at this point is approaching the highest level of all time, Glassnode team believes that this will also reflect on the price over time.