Bullish on Bitcoin: Glassnode’s Latest Indicators Point to ‘Growing Optimism’
July 23 2024 - 2:00AM
NEWSBTC
As Bitcoin approaches a decade and a half years of flawless
service, it becomes increasingly difficult not to accept its
technical stability. Though it may be a technical accomplishment,
this strength made Bitcoin different from many centralized systems,
which can suffer outages and downtimes. Just last week, the global
IT outage sparked by CrowdStrike revealed again how vulnerable
centralized financial systems can be across sectors. Related
Reading: Don’t Get Shaken Out, Analyst Says Bitcoin And Altcoins
Rally Is Just Starting On the contrary, Bitcoin has long functioned
unabated and displayed extreme financial strength during growth
over longer-term monetary prospects. Banks can be shut down, but
Bitcoin never halts. While a global IT outage caused by CrowdStrike
hit multiple sectors, exposing the weaknesses of centralized
systems, #BTC kept going strong. Its decentralized nature helped it
break price resistances as traditional markets…
pic.twitter.com/RK7n88WCBR — 𝗡𝗲𝗴𝗲𝗻𝘁𝗿𝗼𝗽𝗶𝗰 (@Negentropic_) July 22,
2024 Glassnode Insights: Indicators of a Bullish Bitcoin Sentiment
According to Glassnode’s latest analysis, there’s a growing sense
of optimism surrounding Bitcoin’s market outlook. The co-founders
of Glassnode, known collectively as Negentrophic, shared insights
on platform X, emphasizing the continuous operation of Bitcoin with
the phrase, “Banks can be shut down, but Bitcoin never halts.”
Their newly introduced metrics reinforce this sentiment, notably
the ‘risk speedometer,’ which points to a positive “short to
medium-term” outlook for Bitcoin. Breaking down the components of
the risk speedometer provides a clearer picture of the market’s
current stance: Market Type: The stability of Bitcoin is mirrored
in its current market type score of 7, consistent with the previous
week and indicating less volatility compared to the 52-week average
of 41. Market Risk: Currently, Bitcoin is categorized under a
low-risk environment with a score of zero, showing a notable
decrease from last week’s high-risk score and substantially lower
than the 52-week average. Price Momentum: Although still in
negative territory at -24, the price momentum shows improvement
from -60 the previous week. This suggests a positive shift in
market dynamics despite the current score being below the 52-week
average. On-Chain Fundamentals: Scoring 54, this metric stands
neutral, aligning closely with the previous week’s score and the
52-week average, indicating stable on-chain activity and hinting at
potential for recovery in Bitcoin’s market. Crypto Market Current
Performance Despite these promising signals, the market experienced
a mild drop earlier today, with slight corrections observed among
different assets. For instance, Bitcoin has dropped from its
24-hour high of $68,480 to current trading at $67,170—a 0.7% drop
in the past day. Ethereum also has mirrored this slight dip in
Bitcoin, with the second largest crypto by market cap dropping by
1.5% in the past day to trade at $3,461. Related Reading: Here’s
Why The Bitcoin Price Crashed Below $66,000, Taking Shiba Inu And
Dogecoin With It Given that the Glassnode indicators are still
indicating growing optimism, it is worth noting that we could still
see a rebound later this week; after all, Mondays are just the
beginning of a trading week. Featured image created with DALL-E,
Chart from TradingView
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