• Bitcoin and Ether’s price and on-chain activity have seen little volatility since the start of the year
• Glassnode’s lead analyst said that periods of low market activity are often followed by volatility storms
• Glassnode’s first on-chain video report of 2023 suggests that data-based indicators show signs of an emerging crypto bull market
Bitcoin’s yearly start may be signaling an incoming bull market, according to Glassnode’s first on-chain video report of 2023. The report, released on Tuesday, reviews what could be data-based indicators of an emerging crypto bull market and suggests that Bitcoin and Ether’s price and on-chain activity have seen little volatility since the year began.
Glassnode’s lead analyst James Check noted that Bitcoin has been stuck trading within a roughly $550 range since December 17, representing a mere 3.4% trading range for almost an entire month. „It really is quite remarkable, and there could be some buildup of energy that’s ready to be released,“ he said. Check went on to explain that periods of low market activity are often followed by volatility storms, and suggested that the current low volatility may be preparing the market for a significant move.
The report further explained that Bitcoin’s hash rate has seen a slight decline since the beginning of the year. This could be interpreted as miners selling their Bitcoin to cover electricity costs, which could potentially put selling pressure on the market. However, Check noted that the decline is not significant enough to be a major worry.
Glassnode also highlighted that the number of active Bitcoin addresses has recently seen a steady increase. This could be a sign of increasing participation from retail investors, which could be an indication of a potential bull market.
Finally, the report suggested that Ether’s price has been relatively stable since the start of the year, but that its on-chain activity has seen an increase in new participants. This could be a sign that institutional investors are entering the market and could be an indicator of a potential bull market.
Overall, Glassnode’s report paints a picture of a slowly building bull market that is gaining strength with each passing day. While it remains to be seen if the market will take off, the signs are there for those willing to pay attention.