BlocksInform
However, with higher prices comes an increased motivation for network participants to take exit liquidity, especially after the prolonged bear of 2022
Read here ??https://t.co/D5QY9n5dp7
— glassnode (@glassnode) January 23, 2023
Glassnode’s outlook after latest BTC price action
According to on-chain data firm Glassnode, Bitcoin looks “almost out of the woods,” but the price action to levels in the $21k to $23k region also reclaimed several on-chain pricing models.
A look at the investor price (currently at 17.4 thousand dollars) and the delta price (11.4 thousand dollars), means a price similar to the bearish lows of the 2018-2019 market. The price of the investor is the average price at which the investors bought all the coins spent and distributed by the miners, while the Delta Price is derived from the Realized Cape minus the Average Cape of all Bitcoin times to obtain a technical price pattern.
Underlying these prospects is the price discovery phase, which lasted 78 days in 2018. Today's market is at a similar level, with BTC exceeding the realized price of $19.7k.
“This suggests an equivalency in durational pain across the darkest phase of both bear markets,” Glassnode wrote in its weekly market report.
On investor/delta price indicators as well, the chain platform indicates a measurement known as compression, that takes the spot price into account when determining the intensity of market undervaluation. The measure is also in correlation with the magnitude of the variation in the volume of capitalization or capital inflows of an asset, with a threshold area of 0.15 to 0.2.
Taking into account the current price of the CTB and the compression value, Glassnode estimates that a bullish confirmation signal could be triggered if the Bitcoin bulls recover $28.3k.
No more bullfighting optimism.
The measure of profit supply, which has increased by 12% over the past two weeks from 55% to 67%, also contributes to the achievement of an uptrend scenario. The spike in percent of coins in profit is “the sharpest” of all prior bear markets, suggesting a lot more coins changed hands below the $23.3k level.
The key to the case of bulls is also the fact that the Bitcoin price at current levels is primarily the basis of three long-term incumbent costs, short-term incumbent and BTC Realized Price. This is the first time that the spot price has penetrated all three realized prices and that sustained momentum above levels is expected to be positive.
The recent surge in #Bitcoin price action has resulted in an initial breakout above all three cost-basis for the first time since the 2018/19 bear market and the March 2020 Covid crisis.
A prolonged length of time greater than these key psychological levels would be considered constructive. pic.twitter.com/kyzuwSPenv
— glassnode (@glassnode) January 24, 2023
A bull trap case
While Glassnode points to potential bull case scenarios, its report also highlights probable cases of fresh sell-off pressure.
According to the on-chain data report, one of these is the “substantial spike in profitability,” which the platform says raises the possibility of selling pressure triggered by short-term holders.
Miners are also likely to be price motivated and may seek to sell off some of their assets, adding to a potential decline in the BTC price.
