Crypto analytics firm Glassnode reported that the GNI index, which indicates the overall status of the Bitcoin blockchain, has dropped significantly, and a retreat may take place towards the “bearish” region if the decline continues.
Glassnode data shows that if Bitcoin does not show the expected performance in the short term, the price may enter the bearish zone.
The GNI index, which describes the overall state of the Bitcoin blockchain, has dropped to 60 this week. This represents a 17.8 percent drop on a weekly basis. With the BTC price falling below the $ 9,000 level, it is noteworthy to obtain such data.
The GNI dropped 13 points this week and with $BTC no longer testing $10k, we may be seeing a regression back into bearish territory if #Bitcoin's on-chain activity and overall market health continue to decline.
— glassnode (@glassnode) May 25, 2020
Bitcoin price can seriously deviate from the foundations of the asset, and increasing in-block activity can herald a bull run. Likewise, it may be the opposite, and with decreasing Blockhain measurements, the price tends to decrease. The above-mentioned index takes into account measures such as network health and liquidity to determine how strong Bitcoin’s core features are.
In fact, these values seem to have been hit by a 20 point decrease. On the other hand, Glassnode attributes this to the declining economic activity, the final bottom structure of the BTC price and the decreasing accumulation movements.
Combining the fundamentals on the chain with the widespread price trend, the GNI indicator makes it easy for buyers and traders to determine how Bitcoin will move next. Glassnode notes that in the next few weeks, Bitcoin may enter the bearish zone if the foundations are not improved. At this point, the company emphasizes that such a decline is expected, especially after the 3rd block prize split.