Glassnode looks at Bitcoin situation amid “extremely quiet” activity on network

Blockchain analyst company Glassnode is looking for bitcoin status after the world’s leading cryptocurrency began a sudden rally that began over the weekend.

In a new report, Glassnode says a potential bullish factor for bitcoin is the growing number of wallet addresses received and not sent by BTC.

“As for organizations, we may see a more constructive peak in receiving organizations (which store coins), while sending organizations (which release coins) remain relatively unchanged. This is an early shift in the trend and will signal a more positive type of build-up if it continues. It highlights that a reasonable portion of the transaction volume appears to be backlog, with relatively few organizations leaving the network.”

Source: Glassnode
Despite the fact that the number of addresses received by BTC is growing and increasing, glassnode notes that activity on the network for bitcoin has been ominously quiet, at a much lower level than when BTC was growing at the start of the year.

“In contrast to volatility in Spot markets and financial derivatives markets, trading volume and activity within the chain remain extremely low. On a 14-day median basis, adjusted bitcoin trading volume per issue remains low, totaling about $ 5 billion per day. That’s a significant $ 16 billion drop in the day before the May sale.”

The company also looks at mvrv (the ratio of market decency to realized value) among short-term owners. MRVR aims to determine market reversals by comparing the total market value with the unrealized gains or losses of traders ‘ positions.

According to glassnode, the mvrv figure is currently fluctuating at a critical point where BTC can ignite a full bear market or maintain an uptrend.

“STH [short – term holder] – MVRV rarely moves in these oversold conditions, and in almost all historical cases, this is followed by a significant price increase.

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