On-chain data platform Glassnode has released the new issue of its weekly report. Accordingly, the report reveals important data about the future of Bitcoin price. The report reveals that despite the current bullish momentum in BTC, it takes a lot of time for the market to recover. It also reveals that long-term investors increase their savings.
Short-term investors enter the Bitcoin market
According to a new report from Glassnode, short positions in Bitcoin are disabled due to continued depreciation throughout 2022. However, long-term investors continued to hold their funds in BTC. However, a recovery rally above $20,000 emerged in BTC price recently. As a result, short-term investors re-entered BTC as a result of the recovery rally. As a result of this rally, the leading cryptocurrency rose as high as $24,000 last week. However, it fell as it made the weekly close below the 200-week MA. As we reported as Kriptokoin.com, another reason behind the price drop was the FED meeting expected to be held on Wednesday.
As Glassnode points out in its report, short-term investors are entering at psychological levels of $20,000, $30,000, and $40,000. Additionally, the majority of these investors continue to hold assets with losses of over 50%. However, these individuals still haven’t surrendered to the bears, Glassnode claims. The company also published a chart on the holding habits of long-term and short-term investors. In the chart above, the blue bars represent long-term investors. Red candles are short-term investors. The difference is clearly visible in this chart, which shows realized unsold assets. Accordingly, long-term investors prefer not to sell in many ranges. But short-term investors rally at the psychological levels we talked about earlier.
This indicator has visited historic lows
Glassnode talked about an indicator after investor data. This was the Mayer Multiple indicator. Mayer Multiple compares the 200-week MA with instant data of Bitcoin price. Accordingly, Glassnode revealed that the Mayer Multiple has fallen to a rate it has not seen throughout BTC history. The indicator saw levels below 0.55. This level has emerged in only 127 days throughout BTC history. The firm says that Bitcoin’s MM indicator last dropped to these levels in the Covid news of March 2022. The fact that the MM indicator is at these levels reveals that the market is experiencing one of the most exaggerated and extreme periods.
This level is important for Bitcoin
Glassnode states that the 200-week MA is at $22,000, forming a bottom. Explaining that the 111-day MA is the psychological level, the report says that this level is at $30,000. Finally, the report talks about the importance of the 200-day moving average for Bitcoin in its report. Accordingly, the 200-day MA, currently at $35,000, is the crossing point for the bear-bullish cycle. In other words, for Bitcoin price to return to the bull season, it is very critical to get this level back.
The market may not recover for a long time
Finally, Glassnode publishes a warning result for investors. According to the report, Bitcoin is experiencing much less relief rally from the beginning of 2022. Therefore, investor profitability is not rising, and this includes long-term investors. There are even data showing that long-term investors exit in May and June. However, the number of Bitcoins held by long-term investors continues to increase. Glassnode says that BTC price continues its bullish momentum in the short term. However, he adds that in the long run, it will take much more time to return to the bull season.
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