Glassnode: On-chain Data Flashes Powerful Signal For Bitcoin Bulls

Blockcain analytics provider Glassnode writes in the weekly report that a powerful on-chain signal suggests that Bitcoin bulls may have reason to be confident.

Glassnode identifies three price ranges in BTC where large quantities of Bitcoin were transacted according to historical data:

1. $31,000 to $40,000, which Glassnode calls a potential “price floor.”

2. $45,000 to $50,000, in which 1.65 million Bitcoin have a cost basis.

3. $53,000 to $59,000, where Glassnode notes Bitcoin’s trillion-dollar asset status lies.

“The chart below shows the price bands where the current BTC coin supply was last transacted. Since breaching last cycle’s $20k ATH [all-time high], three distinct on-chain volume bands have formed:”

According to Glassnode these three price ranges could act as the solid support that BTC bulls need for any future upward price action.

“On net, this indicates that a fairly strong set of high conviction investors remain in the market and is a powerful signal for the bulls.”

While not all on-chain data is flashing clear bullishness, supply dynamics such as coin maturity – the length of time coins are held onto – are historically sitting in a healthy spot, writes Glassnode.

“On the other hand, supply dynamics, particularly looking at coin maturity, provides a fairly robust signal in either direction. Whilst observations of accumulation and HODLing is usually a long range indicator (i.e. takes time to play out), the current market trend is historically strong for the bulls…
A decline in the young coin HODL waves indicates the market is preferring to HODL and not spend. Young BTC now represent only 15%% of the coin supply and a very strong downtrend is in play.”