Glass node analysis suggests that Bitcoin may be near the bottom

BitcoinA recent analysis from Glassnode revealed that long-term owners (LTH) lock their coins with a loss of 33%, indicating an LTH capitulation that suggests that Bitcoin (BTC) may have reached the bottom.

At the same time, Wall Street disagrees, saying that BTC will see $ 10,000.

Glassnode analysts said:

– The bottom formation is often accompanied by LTHs bearing an ever-increasing share of the unrealized loss. In other words, in order for a bear market to reach a final floor, the proportion of coins held at a loss should primarily be transferred to those who are least price-sensitive, and with the highest conviction. “

Other signs suggest the bottom of BTC

At the same time, Whale investors who have more than 1000 BTC and “Shrimp” who are investors with less than one BTC have also accumulated BTC during the bear market. The accumulation indicates that many investors are collecting BTC at reasonable prices since they expect it to take a bullish direction soon.

Glass node figures also indicate that BTC miners who sell out have also slowed down. The sell-out trend emerged because miners wanted to pay out as soon as possible since they expected BTC to fall further. The decline suggests that miners also believe BTC has bottomed out. This is why they are not in a hurry to withdraw money and only want to sell because they need money, but not because they think they will lose profits.

In addition, the author of The Crypto Trader, Glen Goodman, referred to the magazine’s front page indicator technique to explain why he thought BTC could finally have bottomed out during his interview at Bloomberg Crypto. The current indicator suggests that no matter what emotion prominent media pushes out, the market mood intensifies. Currently, all media headlines are pumping bearish sentiment. However, Goodman noted that the market is going in cycles and believes that the bearish sentiment is likely to turn around soon.

He said:

“When people start to feel really negative and we see all the really bad headlines […] then it makes me start thinking that things will get better soon. “

BTC will continue to fall

Glassnode said that despite all the indicators suggesting a BTC bottom, there are indicators that suggest the opposite.

According to the data, the short-term owners held around 3% to 4% of all BTC supply under the previous bear markets. However, this figure hangs around 16% in the current winter, which indicates that it may take a little longer before the BTC supply is redistributed to investors who are less price sensitive. In the meantime, BTC may continue to fall because volatility will not calm down.

Glassnode analysts commented on the figures, saying:

“Bitcoin investors are not out of the woods yet,”

In addition, a recent poll among Wall Street investors revealed that participants do not expect a bullfight soon. Most respondents (60%) said that BTC would decrease to $ 10,000.