Glassnode warns Bitcoin approaches critical market turning point

Full story: https://grafa.com/news/cryptocurrencies-glassnode-warns-bitcoin-approaches-critical-market-turning-point-347927

Glassnode has issued a warning regarding a significant shift in Bitcoin's (CRYPTO:BTC) market dynamics. 

The analysis firm indicates that Bitcoin (BTC) is nearing a pivotal moment that may signal the end of its recent upward trend. 

Key indicators to monitor include the behaviors of short-term and long-term investors, particularly the cost basis of short-term holders. 

Currently, Bitcoin's price stands approximately 7% above the cost basis for short-term holders, which tracks the average purchase price for investors holding BTC for less than 155 days. 

“The Short-Term Holder Cost Basis model for Bitcoin is crucial for gauging sentiment among new investors,” noted Glassnode.

Historically, this model has been effective in identifying market bottoms during bullish cycles and differentiating between bull and bear markets. 

If Bitcoin's price stabilises below this cost basis, it may suggest waning sentiment among new investors, potentially indicating a turning point in market trends. 

While long-term holders have been offloading their Bitcoin, this does not necessarily reflect an end to the bullish market. 

Glassnode pointed out that “Long-Term Holders (LTH) of Bitcoin remain profitable,” and past cycles show that prices often continued to rise even when LTH distribution peaked. 

The firm emphasises that nearly all long-term investors are currently in profitable positions, suggesting that the market is not yet stagnant. 

Investors are advised to closely monitor these indicators to prepare for potential changes in market trends as Bitcoin navigates this critical phase.

At the time of reporting, the Bitcoin price was $93,566.79.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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