• Glassnode released its first on-chain video report of 2023 on Tuesday, noting that both 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 periods of low market activity are often followed by volatility storms and that Bitcoin has been stuck trading within a roughly $550 range since December 17.
• The firm believes that this period of low volatility may signal an incoming bull market, and that traders should be ready for an explosive move in either direction.
Bitcoin has been in a period of low volatility since the start of the year, leading some to believe that an incoming bull market may be on the horizon. Glassnode, a leading on-chain analytics firm, released its first video report of 2023 on Tuesday to discuss the implications of this market activity.
Glassnode’s lead analyst James Check noted that Bitcoin has been trading within a relatively small range of $550 since December 17, indicating a period of low activity that is often followed by “volatility storms”. He said that this period of stagnation may be a sign of an incoming bull market and that traders should be ready for an explosive move in either direction.
The firm also noted that Ether, the second-largest cryptocurrency by market capitalization, has seen similarly low levels of activity since the start of the year. This suggests that the two assets may be poised to move in tandem when the market picks up.
In its report, Glassnode also discussed several data-based indicators that may point to an incoming bull market. Firstly, the firm noticed that the number of Bitcoin whales, or wallets holding a large amount of the asset, has been steadily increasing since December. This indicates that the cryptocurrency is becoming increasingly concentrated within a small number of large holders, which could lead to increased market demand in the near future.
In addition, Glassnode’s research team noticed that the amount of Bitcoin held in unspent transaction outputs (UTXO) has been steadily decreasing since the start of the year. This could indicate that more people are actively trading and moving their Bitcoin, which may be a sign of greater market activity.
Finally, the firm noted that the number of active Ethereum addresses has been steadily increasing since the start of the year. This suggests that more people are using the Ethereum network and could be a sign of increased activity on the platform.
Overall, Glassnode believes that the current period of low volatility may be a sign of an incoming bull market. The firm is urging traders to remain vigilant and be prepared for an explosive move in either direction.