Volatility, negative environment and other factors are pushing Bitcoin down, according to Glassnode co-founder’s report
In his most recent tweet, Glassnode co-founder Described five factors that could hold bitcoin back in the current market conditions. Some of them could be crucial to the recovery of the first cryptocurrency.
Bullish momentum shattered
A few days ago, Bitcoin was deliberately testing the local resistance level of $25,000, but because of a combination of factors, the price action reversed in the opposite direction with the price of the first cryptocurrency reaching back to June’s level.
One of the main factors highlighted by the Glassnode co-founders is the lack of liquidity. With increasing volatility, purchasing power was insufficient to counter the weakness of the transition from equity markets.
In addition to low liquidity, the Bitcoin Risk Signal has also crossed over to the high-risk zone, providing even more pressure on the market as fears spread across equity and digital assets markets.
Ethereum is beating BTC
Although the open interest in some Ethereum derivatives compared to BTC does not speak directly against Bitcoin, it reflects a lack of interest in digital gold among investors.
Demand for downside protection can be considered another factor caused by the unfriendly environment in risk-on markets, as traders would prefer safer options than cryptocurrencies that are surviving through the rate hike cycle and losing around 70% of their values from the ATH.
Lack of market volatility, anemic altcoin performance, and the above are the main factors that pushed Bitcoin away from the reversal rally that seemed so close when the first cryptocurrency was actively testing the $25,000 range.
