Wednesday, May 25, 2022
Home Crypto News Analysis Glassnode Report Shows Bitcoin Will Continue Its Bullish Momentum After Consolidation

Glassnode Report Shows Bitcoin Will Continue Its Bullish Momentum After Consolidation

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The cooling off of Bitcoin derivates and on-chain spending indicates a continued bullish picture for bitcoin.

Read: Burger King Offers US Customers Bitcoin, Ethereum, and Dogecoin Giveaway


After renewing the all-time high, the Spent Output Profit Ratio (SOPR) values correspond to the signs of an early bull market. Holders are waiting for higher prices, not wanting to sell their BTC at current levels.

Keeping Bitcoin adjusted SOPR above 1 indicates the market’s ability to absorb selling pressure without significant bearish pressure on prices.

bitcoin spor

Image Source: Glass Node

 

Analysts looked at the difference between Net Unrealized Profit/Loss (NUPL) based on BTC holders. It remained in the range of 0.5–0.75 values.

Historically, testing this range without going to lower levels has signaled renewed price growth in the coming weeks/months. Earlier, an exit from this range upwards led to a renewal of the historical all-time high in 2013-2014, 2017, and 2021.

btc upward move 2

Image Source: Glass Node

In the BTC perpetual contracts market, financing rates are falling simultaneously while BTC  price is consolidating. This suggests a more cautious approach by traders, which is a healthy situation for the market as a whole.

 

btc funding rates

Image Source: Glass Node

 

Also, note Every time BTC broke an all-time high there were $3.5M long position liquidations per hour.

btc liquidation

Image Source: Glass Node

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Disclaimer

The content is for informational purposes only and may include the author’s personal opinion, and does not necessarily reflect the opinion of TheCryptoBasic. All Financial investments, including crypto, carry significant risk, so always do your complete research before investing. Never invest money you cannot afford to lose; the author or the publication does not hold any responsibility for your financial loss or gains.

Albert Brownhttps://thecryptobasic.com/
Albert Brown is a cryptocurrency investor and journalist who has been in the nascent space since 2017. His love and passion for technological innovations made him delve deeper into the world of blockchain and cryptocurrencies. As a journalist, Brown has written on several crypto-related topics that have been referenced by popular industry players like Tyler Winklevoss, Binance CZ, etc.

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