Bear Market is Over According to Bitcoin Blockchain Data in These Indicators!

8 Glassnode indicators tracking the recovery process from the Bitcoin bear market are now giving green signals.

Bitcoin On-Chain Indicators May Indicate the End of the Bear Market

On-chain analytics firm Glassnode has released a “Bitcoin bear market recovery” indicator panel that combines different on-chain indicators to determine whether the market is experiencing a healthy and strong recovery from the bear market.

“Overall, Bitcoin investors’ behavior has been extremely consistent throughout cycles, which allows us to find convergence points,” the firm explains. Eight metrics covering four BTC market areas are used here.

The first of these is related to the alignment of the spot price with the 200-day simple moving average (SMA) and the realized price, which are two important pricing models. The realized price is an on-chain pricing model that measures the average market investor’s cost basis.

When the cryptocurrency rises above these two pricing models, it usually indicates a recovery from the bear trend.

The second area of interest is network usage. The relevant indicators are the number of new addresses and miner fee revenue. When these metrics rise, the blockchain is observing more activity, indicating that there is currently higher demand for the currency.

Profitability-related indicators are combined in this indicator panel as a third group, which is useful for checking that selling pressure has been exhausted and that the market can absorb any selling side.

Finally, there is the issue of long-term investors (LTHs). Bear market bottoms occur when these investors take the maximum share of supply, while recovery occurs when LTHs start spending and new demand absorbs this sale.

Now there is a chart showing what these indicators indicate about the current state of the Bitcoin industry:

As you can see above, the chart has recently become dark, indicating that Bitcoin indicators are signaling a recovery from the bear market.

In the chart, it can be seen that this signal has continued in past cycles as well, as the cryptocurrency’s price has typically rallied after the formation of this pattern.

The April 2019 rally, which was also a recovery rally from bear market lows, is quite similar to the current rally, and the formation of this pattern was observed in the middle.

Due to all of these indicators recently entering the positive zone of the cryptocurrency, Glassnode believes that “the Bitcoin bear may be behind us.”

What Happened to the Price of Bitcoin (BTC)?

At the time of writing, Bitcoin is trading at around $30,321 and has risen about 5% from its low point in the past week.

Bitcoin (BTC) Fiyatı 30309

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