With bitcoin losing nearly half its value at one point a week ago and marking an 18-month low, the asset’s situation seemed gloomy at best. However, there are some positive signs as investors have been continuously withdrawing their BTC holdings from exchanges.
BTC on exchanges sees 3-year lows
There has been a lot of talk about what happened in the crypto market over the past few weeks, starting in late March when BTC was near $50,000. After failing at that point, the asset began what later became the longest negative streak in terms of consecutive weekly candles in the red (9).
This massive downturn was exacerbated by the adverse developments surrounding the Terra landscape in May and Celsius (and now other lenders and crypto platforms) in June.
This all culminated with a fall last Sunday to an 18-month low of $17,500. Investors and miners sold some of their bitcoin positions amid the pullback, many of them at a loss.
Now, though, there seems to be certain relief as BTC has recovered around $4,000. Moreover, data from Glassnode shows that investors have stopped transferring bitcoins onto exchanges. In fact, the number of coins sitting on trading platforms has declined substantially since before the most recent crash and is now down to a 3-year low of under 2.4 million BTC.
At the same time, the analysis company informed that retail investors, who have shown increasing interest in recent weeks, have indeed returned to the fore. The number of non-zero wallets hit an all-time high of over 42 million, as did addresses holding at least one whole BTC (wholecoiners).
Bear Market Within a Normal Range
By concluding that the current bear market started after the ATH marked in November ($69,000), Glassnode noted in its latest post that this one had gone well within “historical norms and magnitude” compared to previous ones.
For example, the company claimed that the typical duration of a bear market is between 260 and 410 days. If we accept that the current one started in November, BTC should close at the first number.
Additionally, previous bear markets have seen the asset’s price drop by 75% to up to 84% from the ATH. Now, the percentage went to almost 75% when bitcoin dipped to $17,500, which could signal that the bottom is in.
