TL; DR Breakdown
- Glassnode reports selling pressure from Asian traders
- The firm said a latter change occurred in November 2021
- On-chain data suggests a new bear run
The on-chain activity of the leading digital asset, Bitcoin, is still showing deep signs of a bearish market. This is because traders in Europe and the United States of America are still soaking in pressures from sellers in Asia. According to a recent update by analysis firm, Glassnode, the price of Bitcoin has continued to trade in between a fixed range. In the last few weeks, the price of one Bitcoin has registered a price of $37,680 before registering its highest price yet of $42,312 in the same range.
Glassnode reported a pattern change in November 2021
As of Tuesday, Bitcoin saw a sudden surge in price to create a new high in the range in the last two weeks of trading. However, Glassnodes review has mentioned that the on-chain activity of the asset appears to be slow. The analysis firm positioned that although Bitcoin was presently fighting off the bears, it is doing well in terms of recovering.
The Glassnode study also mentioned that traders are reacting differently to the asset’s price based on their location. In the report, Glassnode mentioned that the majority of the buyers are traders from the US or Europe, while traders in Asia are majorly selling off their assets. Glassnode reports that the pattern has been long-established, except around November 2021, when every trader was scooping up the available Bitcoin.
On-chain data suggests a new bear run
One of Glassnodes’ reporters, Checkmate, also said that traders now in the buying region have once been on the other side of the coin. This means that across 2020 and the earliest parts of 2021, traders in Europe and the US purchased massive amounts of Bitcoin. The reporter mentioned that even though traders from both region stopped purchasing en mass around July, traders in Europe has continued to buy since then.
Glassnode also claims that the Asian crypto market has witnessed a low amount of buying since the third quarter of 2021 amid the current sell-off in the market. According to most of the on-chain data available, the crypto market is yet set for another bear run. The number of new traders creating wallets has been on the rise since the last report in 2021.
This same scenario was experienced across the market from 2018 to 2020. Presently, Bitcoin has more than 100,000 new entities debuting on the network. Transactions have also declined, with the network witnessing a drop in transfers above $1 million. Glassnode said that this activity might be the trigger for a bear market.
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