On-chain analytics firm Glassnode has concluded that Bitcoin (CRYPTO: BTC) currently has “numerous bearish headwinds in play.”
What Happened: In the most recent edition of its weekly on-chain report, Glassnode said the probability of a more sustained bear market can be expected to increase given the fact that recency bias and the magnitude of investor losses weigh on sentiment.
“One of the distinct signals of bearish Bitcoin markets is a lack of on-chain activity,” stated the Glassnode analysts.
“This week however the degree of on-chain activity is languishing at the lower bound of the bear market channel, which can hardly be interpreted as a signal of increased interest and demand for the asset.”
The report went on to note the number of non-zero balance addresses created over the last 30-days had also decreased. The analysts interpreted this as a sign that some investors had been emptying their address balances completely.
“Over the last month, around 219k addresses (0.54% of the total) have been emptied, which is a metric to watch in case…