Glassnode Research Shows Bitcoin Won’t Grow For 4 Reasons

price Bitcoin (BTC) it fell below $ 30,000 and again signaled a new bear market. Although some enthusiasts claim that the so-called “bear marketNot yet arrived, data analyst Glassnode has listed four reasons why BTC won’t rise again anytime soon.

In its weekly report, Glassnode assessed the bearish outlook for Bitcoin. In addition, he identified reasons that could trigger an even more pessimistic scenario for cryptocurrency.

Among them: loss of interest from institutional investors, low activity on the Bitcoin network, and price ranges with weak support according to their volume.

institutional escape

As Glassnode points out, the expiration of tens of thousands of bitcoin contracts in the Grayscale investment fund is a possible catalyst for a major price movement.

If the release of these BTCs to the market is confused with declining interest from institutional investors, this move seems to indicate the downside.

In addition, the report states that 2 million bitcoins were last moved between USD 31,000 e USD 34,300. IThis represents 10.5% of the total unpaid BTC, Glassnode notes.

According to the researchers, this price range represents a cryptocurrency support node. However, while this seems like good support for Bitcoin, the analysis points in the other direction:

“The market is trading at the bottom of this support node, and there are several support levels below these prices.”

Low activity of the Bitcoin network

The third sign of an emerging bear market is the low activity of the Bitcoin blockchain. Currently, about $ 5.3 billion is paid out daily. This represents a drop of more than 65% from the peak in the second quarter of this year.

“This indicates a relatively low demand for costing,” the company said.

Also, according to the company, another worrying point is that 33% of the BTC supply that has not been moved is below the value it had when it reached its current addresses.

The report also points out that a large amount of real estate BTC represents “unrealized losses.” That is, in fact, they are not losses until they are sold at current prices.

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