Bitcoin is showing mixed bullish-bearish signals, according to Glassnode

With the price hovering over $ 30,000 this week, blockchain analytics firm Glassnode said Bitcoin sends mixed signals of bullish and bearish signals.

The most threatening bearish signal for Bitcoin is the lack of demand from institutional investors. According to Glassnode, there is currently little institutional interest in products such as the Grayscale Bitcoin Trust or Purpose ETF.

“The GBTC price continued to trade significantly lower last week, fluctuating between -11.0% and -15.3%. Although it has rebounded from an all-time low of -21.3% of net asset value (NAV), this low and sustained trade shows lackluster demand and also signals a sell off from the spot market.

Net inflows into the Purpose ETF have also slowed after seeing relatively strong demand in May and June. Last week closed with the largest net inflow of -90.76 BTC since mid-May. “

Additionally, the amount of Bitcoin held at OTC counters has increased by around 1,780 BTC in the past two weeks, another potential sign of a lack of institutional interest.

Glassnode notes that another bearish indicator is that Bitcoin’s on-chain activity is stalling.

“The on-chain activity was not very active this week as an empty mempool (waiting area) and the volume of transactions continued to decline. When the mempool was empty, the average block size was reduced from 15% to 20% to 1,103 Mbytes. This shows that the demand for Bitcoin block space and on-chain processing is low, the mined blocks are not full, and network usage is relatively low. “

Up to 6.2 million BTC – about 33% of the circulating supply – is currently held at unrealized losses, which could mean “via resistance and selling pressure”.

On the flip side, Glassnode points out that on-chain data shows that more investors are cuddling instead of spending money. Long Term Holders (LTH) currently hold 75% of the circulating supply, of which 6% are at loss and 69% are profitable.

“Bullish squeeze that started in previous bull markets were triggered by LTHs holding 65% (twice in 2013), 75% (in 2017) and 80% (in 2020) of the circulating supply.”

“If the current bitcoin generation rate (14.75k BTC / day) continues, in about two months LTH will hold 80% of supply (although this is unlikely as we know) that much bitcoin was issued and sold from March to May ) “.

Additionally, net outflows from the exchanges hit 36,300 BTC per month after a period of significant net inflows since mid-May, another indicator of holding behavior.

Bitcoin is trading at $ 32,130 at press time and is up more than 5% in the past 24 hours.

Bitcoin price chart | Source: Tradingview

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