As bitcoin (BTC) continues to capture the imagination of investors around the world, blockchain analytics firm Glassnode has released significant findings that point to significant upside potential for this major cryptocurrency.
After examining key indicators, Glassnode has highlighted key indicators that could point to Bitcoin's imminent growth.
In this article, we will take a closer look at these indicators and what they mean for short-term and long-term investors.
Chain indicators are used to determine market sentiment and assess the health of the #cryptocurrency .
These indicators analyze data directly from the #blockchain and provide insight into investor behavior, trading volumes and overall network activity.
Glassnode emphasizes the importance of the #Bitcoin Realized Cap indicator, which calculates the total value of Bitcoin based on the price at which each coin last moved. Unlike market value, which is simply the current price multiplied by the volume in circulation, Realized Cap reflects the real value of the holder.
This indicator serves as a barometer of market profitability and potential price movements. According to Glassnode, Realized Cap is
Notably, this growth rate is below the peak of the last major bull cycle at 5.7x.
The current trajectory indicates that bitcoin has not yet entered a full euphoric phase, which means that there is room for further growth.
To understand these conclusions, we need to look at bitcoin's past performance.
The current cycle reflects the bullish period of 2015-2018, characterized by significant capital inflows from spot market investors. It mirrors the bullish period of 2018.
In this previous cycle, bitcoin experienced explosive growth and reached historic highs that changed the cryptocurrency landscape.
Glassnode points out a key difference with the current situation. Despite its much larger market size, bitcoin has shown remarkable resilience in the face of market corrections.
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