The indicators on the chain indicate that Bitcoin holders will wait until the price rises sharply before selling, which means that Bitcoin may have more room for development.
Original title: “Glassnode 丨Data on the chain show: There is still much room for growth in BTC? 》
Written by: Liesl Eichholz
Translation: Olivia
BTC continued its impressive winning streak, reaching $15,000 in the past week with little sign of slowing down. On-chain indicators show that it has more room for growth before reaching the next peak.
Bitcoin Health Market
BTC had another impressive performance this week, with a price of 13,690 USD at the beginning of the 45th week and a price of 15,500 USD at the end. This represents a 13.2% growth, and marks the first time that BTC has generated more than $15,000 in revenue since January 2018.
In week 45, the fundamentals on the BTC chain rose slightly and began to make up for the losses of the previous week. GNI rose by 5 points to 62 points. This increase is mainly caused by the rise in the liquidity sub-index, while the network health index has also increased.
Internet health has risen by 3 points in the past week, reaching 62 points. This is driven by the growth of the network growth sub-category, as BTC sees more new addresses and entities.
Liquidity rose by 10 points, and the score at the end of the week was 59 points. Because the transaction liquidity performed very well, and as the number of transactions on the chain and the total amount of BTC transfers on the chain increased, it eventually increased by 11 points.
The sentiment index dropped by 2 points in week 45, and the week ended with 66 points. The savings behavior subcategory is the main driving force behind this decline, as position holders sold more than their average purchases.
Glassnode guide
The guide once again sits firmly on the top spot in the 45th week of bullish indicators, marking an extremely strong week for BTC.
Over the past week, the price of BTC has continued to rise. BTC has surpassed $15,000 for the first time since the bull market in early 2018, and this growth seems to continue, with strong positive sentiment echoed throughout the community.
After the U.S. election, the stock market has begun to rebound – but BTC’s growth rate has far exceeded the stock market’s recovery rate, which has increased the impact of the possibility of decoupling that we have seen in the past few weeks. If BTC’s growth trajectory continues, it may firmly decouple from the traditional financial market, opening the door to further growth.
Altcoin overview
Performance relative to BTC
Most mainstream altcoins did not perform as well as BTC in week 45, and their cryptocurrency losses ranged from 2.7% to 11.7%. One notable exception is ETH, which is equivalent to a 1.2% increase in BTC this week.
The worst performer among the top ten mainstream altcoins was BNB, which fell 11.7% relative to BTC. Despite this loss, in terms of total market value, it still maintains its seventh position.
Performance relative to USD
Although most currencies have shown a depreciation trend relative to BTC, the dollar value of mainstream altcoins has risen relative to BTC in the past week. The most impressive is ETH, which rose by 14.6% and surpassed $450 for the first time since July 2018.
In the past week, LINK also rebounded, rising 10.1% and breaking through $12 again. At the same time, BNB has stagnated and its market value has only risen by less than 1%.
Bitcoin’s unrealized profits indicate that it has room for growth
The relative unrealized profit of BTC shows the total profit of all existing coins. The price at the time of realization (that is, the last move) is lower than the current price and is standardized by market value.
The current value of this indicator is still very low compared to the previous top, indicating that the price of BTC has more room for growth.
Previously, the global record for this indicator was around 0.8. Last year the highest record was at the top of 13,000, reaching 0.64. At the current price of more than $15,000, the relative unrealized profit level is only 0.56.
These values indicate that BTC holders will wait until we see a further sharp increase in the price before selling, which means that BTC has more room for development before we see the next top.
Source link: mp.weixin.qq.com
