According to Glassnode’s latest on-chain analysis, the present (Bitcoin) BTC bear cycle is probably the worst in the crypto’s history.
Glassnode notes that most BTC traders are selling their shares at a loss as several factors converted the current bear market into the worst ever. The Blockchain analysis platform also observed the reasons for BTC’s dip below the moving average of the 200th day. With added net losses and deviation from the realized price, 2022 is set be the worst year for Bitcoin.
When did the Downfall Begin
A clear indication of an upcoming bear market is when the BTC spot price falls lower than the moving average of 200-days. The present price levels are truly rare, as Glassnode highlights. In the bear market of 2022, BTC has gone below the moving average 200-days mark.
The phenomenon of Mayer Multiple (MM) going under 0.5 is very uncommon. It was last observed in the year 2015. Out of a total of 4160 days of trading only 84 have a recorded closing of MM below 0.5. MM takes price changes below and above the moving target of 200-days into consideration.
Spot Prices below Realized Price
Trading of spot prices below realized prices is very rare. This is only the fifth time it has happened since the launch of Bitcoin back in 2009. The fall in spot prices is forcing traders to sell off their BTC at a loss. This cascading effect is expected during bearish trends and market capitulations.
