Bitcoin is going through a red period, and the coin is still trying to bounce back above the $50K level.
In a recent report, Glassnode analysts explained who is responsible for Bitcoin’s lackluster performance and why the $45,000 level is critical to resuming the rally.
Without further ado, the following explains “Glassnode”:
Asian Selling Affects Bitcoin Rally:
Johannes, a financial markets analyst, took to Twitter and tweeted a tweet comparing the activity of Asian, European and American traders in the Bitcoin market in recent years.
1/2 Some insights from @glassnode‘s engine room: breaking down #Bitcoin price movement by working hours reveals an impressive amount of selling from Asia as force behind the current downturn. pic.twitter.com/FVpILgIgky
— Johannes (@ultravirtu) December 17, 2021
According to him, and based on Glassnode data, the massive sell-off from Asia is one of the main drivers behind the current decline in bitcoin prices.
At the same time, the drive to this stimulus appears to diminish over time.
The opposite factor (buys), came from US and EU traders.
The selling operations appeared more in the month of March 2021, as the selling force was large during the Asian market trading sessions.
Bloomberg analysts previously released this theory based on their analysis of intraday lows and highs in the early March sessions.
The levels to watch are $45,000 then $42,000:
Glassnode analysts have studied the long- and short-term behavior of major cryptocurrency holders.
According to them, the near-level bitcoin holders are now underwater, meaning they bought the spikes and are still tied for the time being.
While Bitcoin holders are at the long-term level, their portfolios are still in profit mode.
When this level holds, historically, it is a sign of strong demand for Bitcoin from a short-term perspective.
Otherwise, it will take several months for the bitcoin price to recover.
If Glassnode’s estimation and analysis succeeds this time around, the Bitcoin bulls need to defend the $45,000 level.
Also, this level is located near the 50% point of this year’s price range.
This combination of factors confirms that holding over $45,000 is very important for Bitcoin.
At the same time, a move below $42,000 will certainly lead to bears in control, according to several analysts.
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