Thursday, February 2, 2023
No Result
View All Result
SUBSCRIBE
eNaira Online News
  • Home
  • eNaira
  • Capital Market
  • Business
  • Finance
  • Banking
  • PF
  • Companies
  • Crypto
  • Real Estates
  • Opinion
  • Home
  • eNaira
  • Capital Market
  • Business
  • Finance
  • Banking
  • PF
  • Companies
  • Crypto
  • Real Estates
  • Opinion
eNaira Online News
No Result
View All Result

Bitcoin on its way to $32,000 as on-chain data suggests net accumulation

by e-Naira Online News
May 31, 2022
in Crypto
Reading Time: 3 mins read
A A
0
Home Crypto
Share on FacebookShare on Twitter


Cryptocurrency bulls took over the market on Monday, with Bitcoin leading the charge, fighting its way through the $30,000 resistance level it was trading below on Sunday, to now head towards $32,000, a price point not seen in 20 days.

Bitcoin rose over 8%, breaking the $31,000 mark driven by global investors as Asian and European equity markets climbed. American markets were closed for the Memorial Day holiday. The rally in the market can be traced to a weaker dollar, and an on-chain report from Glassnode, which suggested that Bitcoin hodlers are now “the only ones left” and they appear to be “doubling down as prices correct below $30K.”

Marcus Sotiriou, an analyst at digital asset broker, GlobalBlock said in a note on Monday, “Bitcoin broke above $30,000, but it needs to hold the $29,300 level on a retest to suggest continuation to the upside. Relief has been long overdue in the crypto market, as the U.S. stock market already rallied last week, after Jerome Powell’s speech that gave the market clarity on their plans to carry out a soft economic landing.”

What you should know

  • As previously mentioned, the rally in the market comes on the back of a bump in Asian equities, which were bullish on Monday as a result of the fact that major Chinese cities have started to ease coronavirus restrictions after months of strict lockdowns.
  • Traders laid bets that reopening the economy could spark an increase in consumer spending – which could increase company revenues in the coming weeks and could indicate a bottom for stocks in the region.
  • Also, weighing on markets is the Dollar Index (DXY), which measures the strength of the United States dollar. In the last two weeks, the DXY has lost 3.09% from a 20 year high of over 104 basis points to currently trade 101.653 basis points as of the time of this writing.
  • Also weighing in on the market is a Glassnode report that suggests net accumulation in the $30,000 trading zone. The report explained that unlike the sell-offs that occurred in March 2020 and November 2018, which were followed by an upswing in on-chain activity that “initiated the subsequent bull runs,” the most recent sell-off has yet to “inspire an influx of new users into the space.”
  • According to Glassnode analysts, they believe this suggests that the current activity/buying spree we are seeing in the market is predominantly being driven by hodlers (Individuals who have previously bought cryptocurrency and are holding their positions for the long term).
  • While many investors are disinterested in BTC’s sideways price action, contrarian investors view it as an opportunity to accumulate, a point evidenced by the Bitcoin accumulation trend score which “has returned a near-perfect score above 0.9” for the past two weeks, according to Glassnode.
  • Also, according to Glassnode, high scores on this metric during bearish trends “generally trigger after a very significant correction in price as investor psychology shifts from uncertainty to value accumulation.”
  • A closer look at the data provided by Glassnode shows that the recent accumulation has been largely driven by entities with less than 100 BTC and entities with more than 10,000 BTC.
  • In the recent volatility, the aggregate balance of entities holding less than 100 BTC increased by 80,724 BTC, which Glassnode noted was “remarkably similar to the net 80,081 BTC liquidated by the LUNA Foundation Guard.”
  • Entities with holdings in excess of 10,000 BTC added 46,269 Bitcoin to their balance during this same time period, while entities holding 100 BTC to 10,000 BTC “maintained a more neutral rating around 0.5, suggesting relatively little net change to their holdings.”

Long-term Bitcoin holders appear to be the main driving force behind the current price action with some actively accumulating and others realizing losses at an average of -27%. Despite the selling witnessed by some in the long-term holder cohort, the total supply held by these wallets recently returned to its all-time high of 13.048 million BTC.

Glassnode explained, “Unless significant coin redistribution occurs, we can therefore expect this supply metric to commence climbing over the course of the next 3-4 months, suggesting HODLers continue to gradually soak up, and hold onto supply.”

Related



Source link

Tags: accumulationBitcoindataNetonchainsuggests
Previous Post

Profit taking in 17 stocks drag indices by N169 billion — Business — The Guardian Nigeria News – Nigeria and World News

Next Post

Nigeria advertising industry inches up in global space

Related Posts

Crypto

Federal Reserve Raises Benchmark Interest Rate by 0.25%, Disinflationary Process ‘Early,’ Says Powell  – Economics Bitcoin News

by e-Naira Online News
February 1, 2023
Crypto

Tesla’s SEC Filing Shows Bitcoin Fair Market Value of $191 Million – Featured Bitcoin News

by e-Naira Online News
February 1, 2023
Crypto

Panamanian Crypto Bill Might Get a Second Wind in the Highest Court of the Country – Regulation Bitcoin News

by e-Naira Online News
January 31, 2023
Crypto

Recruiting Agencies in Japan Are Turning to the Metaverse – Metaverse Bitcoin News

by e-Naira Online News
January 30, 2023
Crypto

Bitcoin posts its best January in ten years, gains 40% within one month

by e-Naira Online News
January 30, 2023
Next Post

Nigeria advertising industry inches up in global space

Nollywood stars mourn Yoruba actor, Gbadebo Osmond

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

  • Trending
  • Comments
  • Latest

British American Tobacco earns alliance for Water Stew — Opinion — The Guardian Nigeria News – Nigeria and World News

January 29, 2023

Crypto Bank Custodia Denied Membership in US Federal Reserve System – Finance Bitcoin News

January 29, 2023

Guinness grows half year gross profit by 16%

January 27, 2023

Nigeria, others to meet over development in oil sector | The Guardian Nigeria News

January 27, 2023

Vitafoam Plc advocates special FX window for manufacturing sector

January 28, 2023

NIMASA plots CVFF disbursement strategy with banks — Business — The Guardian Nigeria News – Nigeria and World News

January 29, 2023

NGX CEO says to strengthen partnerships, digital transformation, sustainability

January 26, 2023

CAP full year PBT rises by 79% to N3.1bn

January 27, 2023

Two Stocks Trigger 0.05% Loss At Unlisted Stock Exchange

February 2, 2023

Tinubu distancing self from APC’s failure —Atiku’s aide

February 2, 2023

Why rail sector remains moribund, has no profit in 59 years | The Guardian Nigeria News

February 2, 2023

Nigerian universities and the noise of advancing ideas

February 2, 2023

Moody’s downgrades Nigerian banks’ rating

February 1, 2023

8 Black Financial Influencers You Ought to Follow

February 1, 2023

Federal Reserve Raises Benchmark Interest Rate by 0.25%, Disinflationary Process ‘Early,’ Says Powell  – Economics Bitcoin News

February 1, 2023

Geregu Power reports 51% drop in annual profit, proposes N20 billion dividend

February 1, 2023

Get the free newsletter

eNaira Online News

Get the latest news and follow the coverage of eNaira, Business & Financial, Stock Market, Analysis, and more from the trusted sources.

CATEGORIES

  • Banking
  • Business
  • Capital Market
  • Companies
  • Crypto
  • eNaira
  • Finance
  • Opinion
  • Personal Finance
  • Real estate
  • Uncategorized
No Result
View All Result

GET THE FREE NEWSLETTER

  • Disclaimer
  • Privacy Policy
  • DMCA
  • Cookie Privacy Policy
  • Terms and Conditions
  • Contact us

Copyright © 2022 e-Naira Online News.
e-Naira Online News is not responsible for the content of external sites.

No Result
View All Result
  • Home
  • eNaira
  • Capital Market
  • Business
  • Finance
  • Banking
  • PF
  • Companies
  • Crypto
  • Real Estates
  • Opinion

Copyright © 2022 e-Naira Online News.
e-Naira Online News is not responsible for the content of external sites.