Glassnode Founders Evaluate Bitcoin! “Momentum Broken”

bitcoinWhile testing $25,000 recently boosted $30,000 hopes, we see that the bullish momentum has faltered.

After struggling to break the $21,600 resistance in June and July, BTC fell below this level again.

Although this latest drop is not specific to Bitcoin and is due to factors on the global side, it is positive that the risk appetite has not risen, and investors are annoyed.

The co-founders of data analysis company Glassnode stated that the reason for Bitcoin’s difficulty in rising is due to the low liquidity environment.

Part of the report is as follows:

“The uptrend has been shattered.

Liquidity remained low, limiting the buying power needed to break above the $25,000 resistance level.

As the low liquidity environment continued, volatility increased and purchasing power could not withstand renewed weakness in equity markets.

Notice how trading volume has fallen since July and more coins have been withdrawn from exchanges.

in the report

The founders summarized the report as follows:

• Low liquidity environment prevails.

• Bitcoin risk signal has crossed into high risk zone.

• A downside hedge has been requested.

• Ethereum open interest has surpassed Bitcoin.

• Altcoins have melted a lot more than Bitcoin.

#BTC structure update:

– Low liquidity environment
– #Bitcoin Risk Signal crossed over to the high-risk zone
– Demand for downside protection
– #ETH options open interest dominating $BTC
– Altcoins losing steam

Check out the complete analysis here 👇https://t.co/WcfcRTDCif pic.twitter.com/Ebe7UFaJDd

— 𝗡𝗲𝗴𝗲𝗻𝘁𝗿𝗼𝗽𝗶𝗰 (@Negentropic_) August 22, 2022

*Not Investment Advice.