- Glassnode research reveals the majority of selling pressure is coming from Asia.
- According to their on-chain metrics, the market remains in bearish territory.
- Notably, Bitcoin surged to a 2 week high today.
Glassnode, in their latest newsletter, has revealed that market participants in Asia are doing a lot of selling as opposed to participants in the US and the EU. However, as per their report, the market remains bearish.
Glassnode Insights
Blockchain data and analytics firm Glassnode in their latest newsletter titled “High Volatility Is On The Horizon,” have disclosed that a chunk of the selling pressure in the Bitcoin market is traceable to Asian markets. In addition, the blockchain data provider noted that Bitcoin has continued to trade within a tight range; they believe this to be a possible indicator of high volatility in the short term. To understand what would lead to this volatility, the firm examined the dominance of buy and selling pressure in different regions, on-chain activities, and the derivative markets.
Using new metrics to track the price action of the foremost digital asset by market cap during the different trading hours, Glassnode discovered that during Asian hours there was more selling while the reverse was the case during US and EU trading hours. The report read, “Current buy side demand appears to be dominated by US and EU markets, with the majority of sell-side sources during Asian trading hours.”
According to Glassnode’s newsletter, this pattern has been dominant for most of 2020 to 2022, with the trend starting in March 2020. However, there have been moments when this trend shifted, firstly around May through July, where there was less buying from US and Asian markets, and secondly, at the highs from October through November 2021, where all regions were buying notably, with Asia leading the demand.
Glassnode attributes a lot of the demand in the US and EU within the two years to increased fiat supply and stimulus packages that brought inflationary fears, while the current bearish pressure from Asia has been attributed to the fact that a majority bought at the top. Notably, the data shows that Europe currently provides the most buying activity.
However, Glassnode adds that “although overall price changes are only moderately positive, and yet to signal the return of sustainable bull market style demand.” Furthermore, the firm notes that overall on-chain metrics indicate that the market is still bearish, saying, “Bitcoin network utilisation and on-chain activity remains firmly within bear market territory, albeit is recovering.”
Bitcoin Price Action And Pundits Prediction
Notably, earlier today, Bitcoin surged to a 2 week high. The asset temporarily broke above the $43k point. At the time, the co-founder of Three Arrows Capital Zhu Su, in a tweet, hinted that the move was led by increased demand from Asian traders.
Overall most pundits remain bullish when it comes to Bitcoin in the long term. Michael Novogratz, the CEO of Galaxy Investment Partners, still expects the asset to hit the $100k price point and eventually $500k but believes that regulations would have to be better for this to happen.
Bitcoin is currently trading over $42k, up 2.98% in the last 24 hours and 10% in the last 7 days. It continues its upward move following the Fed announcement to raise rates.
