Glassnode: Investors are pulling back from bearish sentiment

Market sentiment around bitcoin is no longer similar to the skeptical indicators of 2022, analysts at Glassnode found out.

Investors are no longer bearish around Bitcoin (BTC), as they were in 2022. This is the conclusion made by Glassnode analysts in their weekly market research.

According to researchers, the weekly realized price of bitcoin for both long-term and short-term investors has almost leveled off at around $26,000. This equilibrium in indicators signals the willingness of investors to build trading strategies instead of offloading investments at the opportunity.

The realized price of bitcoin from short-term (red line) and long-term (blue) investors. Source: insights.glassnode.com

However, the risk of correction in view of the growth of bitcoin is still present. According to Glassnode, a sharp jump in the price of bitcoin to the levels of $33,200 – $38,700 will create correction risks, as the unrealized profits of investors will increase significantly.

Glassnode also assessed the likelihood of large sales by Mt.Gox (137,000 BTC) or the US authorities, who confiscated about 204,000 BTC. According to analysts, over the past five years, the bitcoin market has recorded seven major waves of capital inflows into the market (against the background of such waves, from 400,000 BTC to 900,000 BTC were bought up per quarter). If the market faces two large sell-offs at once, then it may well have time to buy up all the cryptocurrency in just a quarter if a large wave of capital inflows again, Glassnode believes.

Stay in touch! Subscribe to bitcoinlinux.com at Telegram.