Bitcoin, the world’s largest digital currency, saw prices spike to nearly $25,000 levels while small transactions have been below $10,000, according to blockchain analytics firm Glassnode.
The volume of transactions by retail investors did not increase when the price of the flagship currency was at $24,400 levels, due to lack of interest from regular investors.
ENTER TO WIN $500 IN STOCK OR CRYPTO
Enter your email and you'll also get Benzinga's ultimate morning update AND a free $30 gift card and more!
Glassnode also discusses U.S. dollow inflows and outflows at cryptocurrency exchanges, where there is a cyclical pattern shown by the Bitcoin price relative to the U.S. dollar.
According to the blockchain analytics firm, exchange flows have reached multi-year lows as the reading is comparable to that of late 2020.
This suggests that interest in Bitcoin is waning.
FREE REPORT: How To Learn Options Trading Fast
In this special report, you will learn the four best strategies for trading options, how to stay safe as a complete beginner, a 411% trade case study, PLUS how to access two new potential winning options trades starting today.Claim Your Free Report Here.
Glassnode data, which displays Net Realized Profit/Loss (90 DMA), shows how sellers are still aggressive despite the tumultuous market.
In order to validate a recovery phase, the Net Realized Profit/Loss (90DMA) reading should be approximately neutral when taking the preceding bear cycles of 2018–19 into account.
The ratio between investors' selling price and buying price is known as the SOPR. Glassnode analyzed the SOPR of short-term holders to close off the survey (90DMA). The key number, in this case, is one. If the reading is higher than one, it indicates lucrative expenditure.
According to data from November 2021 during Bitcoin's all-time high (ATH), short-term holders (top purchasers) suffered significant losses. This caused the short-term holder's SOPR (90DMA) to go below one.
This is the point at which there is little conviction, and the resistance will come at a break-even cost of one.