Who is responsible for Bitcoin’s poor performance?
Glassnode analysts have figured out who is responsible for Bitcoin’s poor performance – and explains why the $ 45,000 level is critical to its recovery.
Selling pressure from Asia
Analyst Johannes, whose Twitter account is @ultravirtu, compared the activity of Asian, European and American traders in the Bitcoin market in recent years.
According to Glassnode’s on-chain data, the massive “sale” from Asia is one of the main reasons behind the current price drop in Bitcoin (BTC).
At the same time, the dynamics of this catalyst seem to weaken over time. The opposite factor, amplified by US and European traders, is increasing instead.
The source: Twitter
In March 2021, sales power also came from the Asian market meetings.
Levels seen: $ 45,000, then $ 42,000
Another Glassnode analyst, @TXMCtrades, examined the behavior of long-term (LTH) and short-term (STH) BTC holders. He said Bitcoiner, who is new to the market, is currently at a loss.
In early December, Bitcoin attempted a second time to rebound to the STH cost base near $ 53,000, which signaled demand. However, it still failed and STH (Coin Ownership <5 months) is currently at a loss. “
The source: Twitter
LTH reaches a critical moment when the value in the wallet increases 2.5 times. Historically, this level is an indication of strong short-term demand for Bitcoin.
If it can’t be sustained, Bitcoin will take several months to recover. It is estimated that Bitcoin bulls are currently defending $ 45,000 – that’s nearly 50% of this year’s price range. The combination of these factors confirms that holdings over $ 45,000 are extremely important to bitcoiners.
At the same time, a move below $ 42,000 will certainly give the bears an edge as the leading cryptocurrency “gets caught up in worse price moves,” added an analyst.
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