Bitcoin Holds Flat, Glassnode Analysis Forms ‘Strong Base’ Below $30,000

1 year ago 77

Macroeconomics and financial markets

In the US NY stock market on the 11th, the Dow Jones Industrial Average rose by $317 (0.93%) from the previous day. The Nasdaq Index closed 75 points (0.55%) higher.

The US CPI (US Consumer Price Index) is scheduled to be announced on the 12th, and it is likely to attract a lot of attention as an economic indicator before the US Federal Open Market Committee (FOMC) meeting in July.

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Virtual currency market

In the crypto asset (virtual currency) market, the Bitcoin price rose 0.3% from the previous day to 1 BTC = $ 30,593.

BTC/USD daily

Glassnode, an on-chain data analytics company, has published its latest report.

Bitcoin miner profitability from transaction fees has fallen to a four-month low in the past 24 hours, according to a Glassnode study. This is beginning to decongest the Bitcoin network and mempool with unconfirmed transactions.

This is likely due to the calming demand for Ordinals (Inscriptions) and BRC-20 tokens.

#Bitcoin $BTC Percent Miner Revenue from Fees (7d MA) just reached a 4-month low of 2.075%

View metric: https://t.co/NphJIZNcsL pic.twitter.com/3LsX5UniQh

—glassnode alerts (@glassnodealerts) July 10, 2023

The first wave from February to April 2011 was image-based Inscriptions, with more than 1 million images registered so far.

What about the second wave from May to July 2011? Text-based Inscriptions associated with “BRC-20 Tokens” and high transaction fees.

glass node

Bitcoin transaction fees in US dollars have dropped more than 96% since the height of the BRC-20 boom in May this year. According to Glassnode research, the average fee currently being paid is $1.33 and the median fee is down to $0.16.

glass node

market cycle analysis

Glassnode said that the Bitcoin price has reached $30,000, the midpoint of the 2021-22 bull market cycle, and several indicators are showing a ‘re-accumulation period’ seen in previous cycles. is approaching the level of

Such “re-accumulation periods” are characterized by a lack of macro market direction and tend to trade sideways over several months.

At the $30,000 level, where prices are consolidating, about 75% of the total supply is making a profit (unrealized gain) and 25% is suffering a loss (unrealized loss), but the equilibrium point of this ratio is a hypothetical Both 2016 and 2019, the year before the currency bubble, are at the same ratio of supply balance when the BTC price reaches the midpoint of the market cycle.

The supply cluster between $15,000 and $30,000 has seen massive turnover during the past year’s crypto asset (virtual currency) crash.

In addition, if 1BTC = $15,500, the lower price of the FTX shock in November last year, is regarded as the lower limit of the market cycle, the rate of rise and fall after that has reached +91%. The maximum drop rate (drawdown) since the beginning of the year has remained at -18%, and the strength of this rebound is said to overlap with past trend turning points (new starting points of cyclical uptrends).