Bullish on Bitcoin: Glassnode’s Latest Indicators Point to ‘Growing Optimism’
As Bitcoin approaches a decade and a half years of flawless service, it becomes increasingly difficult not to accept its technical stability.
Though it may be a technical accomplishment, this strength made Bitcoin different from many centralized systems, which can suffer outages and downtimes.
Just last week, the global IT outage sparked by CrowdStrike revealed again how vulnerable centralized financial systems can be across sectors.
On the contrary, Bitcoin has long functioned unabated and displayed extreme financial strength during growth over longer-term monetary prospects.
Banks can be shut down, but Bitcoin never halts.
While a global IT outage caused by CrowdStrike hit multiple sectors, exposing the weaknesses of centralized systems, #BTC kept going strong. Its decentralized nature helped it break price resistances as traditional markets… pic.twitter.com/RK7n88WCBR
— 𝗡𝗲𝗴𝗲𝗻𝘁𝗿𝗼𝗽𝗶𝗰 (@Negentropic_) July 22, 2024
Glassnode Insights: Indicators of a Bullish Bitcoin Sentiment
According to Glassnode’s latest analysis, there’s a growing sense of optimism surrounding Bitcoin’s market outlook.
The co-founders of Glassnode, known collectively as Negentrophic, shared insights on platform X, emphasizing the continuous operation of Bitcoin with the phrase, “Banks can be shut down, but Bitcoin never halts.”
Their newly introduced metrics reinforce this sentiment, notably the ‘risk speedometer,’ which points to a positive “short to medium-term” outlook for Bitcoin.
Breaking down the components of the risk speedometer provides a clearer picture of the market’s current stance:
- Market Type: The stability of Bitcoin is mirrored in its current market type score of 7, consistent with the previous week and indicating less volatility compared to the 52-week average of 41.
- Market Risk: Currently, Bitcoin is categorized under a low-risk environment with a score of zero, showing a notable decrease from last week’s high-risk score and substantially lower than the 52-week average.
- Price Momentum: Although still in negative territory at -24, the price momentum shows improvement from -60 the previous week. This suggests a positive shift in market dynamics despite the current score being below the 52-week average.
- On-Chain Fundamentals: Scoring 54, this metric stands neutral, aligning closely with the previous week’s score and the 52-week average, indicating stable on-chain activity and hinting at potential for recovery in Bitcoin’s market.
Crypto Market Current Performance
Despite these promising signals, the market experienced a mild drop earlier today, with slight corrections observed among different assets.
For instance, Bitcoin has dropped from its 24-hour high of $68,480 to current trading at $67,170—a 0.7% drop in the past day.
Ethereum also has mirrored this slight dip in Bitcoin, with the second largest crypto by market cap dropping by 1.5% in the past day to trade at $3,461.
Given that the Glassnode indicators are still indicating growing optimism, it is worth noting that we could still see a rebound later this week; after all, Mondays are just the beginning of a trading week.
Featured image created with DALL-E, Chart from TradingView
