Data source Glassnode, who published a report on the price of Bitcoin (BTC), stated that the on-chain data is preparing for the next stage of the bull market.
On-chain analytics provider Glassnode noted in its March 22 report that wallets holding 1 BTC or less have increased since March 2018, while the number of Bitcoin whales has declined.
The report stated, “Those with symbolic savings appear to be loyal to the ‘HODL’ view, in a way that has not deteriorated from mid-2018 to the chaos of 2020.”
Whale addresses above 100 BTC remained relatively stable compared to the group with symbolic-scale backlog, which currently holds 62.6 percent of the supply. Because only 0.87 percent increase has been observed in the last year.
Using the “Reserve Risk” indicator, which is used to assess the confidence of long-term investors with the Bitcoin price, Glassnode suggests that BTC “transfers” from long-term investors to new buyers.
The report pointed to three different wealth transfer processes that can be used to predict what stage bull markets are at. With the peaking HODL phases, turning points where the rate of long-term investors are high are considered profitable processes.
“The Reserve Risk indicator says it is currently in a similar position to the second half or later stages of the bull market. There is a larger relative supply share held by long-term investors who have only spent 9 percent since the assumed peak HODL point.”
Glassnode’s view also agrees with Jiang Zhuoer, CEO of the Chinese mining pool BTC.TOP. What he did to local media on March 21 in the statementSaid there has been an overall economic recovery with the introduction of COVID-19 vaccines. He stated that the addition of Bitcoin to the reserves of big companies such as Tesla and MicroStrategy has prevented the decline of interest in cryptocurrencies. He stated that they will act as a catalyst for the reversal of the market.
“Such movements happen often, but they are not usually associated with bear markets,” said investment manager Timothy Peterson, pointing to the recent decline in whale savings. said. Peterson suggests that the bitcoin price could drop as low as $ 25,000.