Bitcoin is ready to “explode in any direction”: Glassnode

The market is especially susceptible to external forces.

The price rise of the last few days could be temporary.

In the medium and long term, bullish expectations remain in force for bitcoin.

The price of bitcoin (BTC) has been within a lateral range for more than 5 months, when it reached its all-time high (ATH) of $73,700. While it is true that bullish expectations are still maintained, some indicators suggest that its price could “explode in any direction.

As CriptoNoticias has reported, September historically tends to be a difficult month for financial markets, including BTC and cryptocurrencies, due to seasonal issues. In the northern hemisphere, summer is ending, and it is common for economic activities to slow down due to vacations.

However, some events could act as a catalyst for the digital currency created by Satoshi Nakamoto to enter a bullish cycle.

In its most recent weekly newsletter, Glassnode, an on-chain data analysis firm, notes that “the market is entering a low-risk zone in relation to the data of the last 90 days and warns:

To reach this conclusion, the firm's specialists point out that, although there is still a large volume of transactions on the network, the rate at which they are processed is decreasing. “The reduction in activity suggests a cooling in the adoption and use of the network, which is a negative sign in terms of the health and dynamism of the network,” says Glassnode.

The following graph shows the volume of transfers on the Bitcoin network since January 2020. The pink line shows the 30-day moving average of the adjusted transfer volume (30D-MA), which allows analyzing the evolution and trading performance of different assets. It is based on past data to offer an average value.