Glassnode interprets based on Bitcoin on-chain data that more and more short-term bitcoin holders are losing money and are prone to sell more. a blockchain analytics service, Glassnode, has shown a grim picture of Bitcoin (BTC), bringing up the chain data that shows further selling pressure is in motion.
On February 21, Glassnode also stated in their weekly analytics report that Bitcoin (BTC) bull is facing various obstacles insinuating an increase in gloomy network statistics. The researchers have pointed out some common weaknesses in mainstream markets along with major geopolitical affairs as the reason for the present risk-off views for the crypto assets.
The researchers said, weakness in both, the traditional markets and Bitcoin, mirrors the constant uncertainty and risk with the Fed rate hike up in March. Also, there is a fear of Ukraine conflict along with the increasing civil unrest in Canada.
It was also included that as the downtrend intensifies, the probability of a more stable bear market might increase. At present, Bitcoin is trading down by 47% from its all-time high in November. It has been downtrending for the last 15 weeks.
The inadequacy in the on-chain activity shows a discrete sign of the Bitcoin bear market. The current number of active entities or addresses is at the lower hem of the bear market channel. This represents on-chain activity during the sideways period or down-trending market, indicating a decrease in interest and demand.
The longer the investors are submerged in their position and the more they fall into an innate loss, they are most likely to spend and sell those held coins.