Bitcoin (BTC) is showing all the signs of further price gains, but the macromarkets could still put an end to the bullish run, says Glassnode.
In its latest weekly update, The Week On-Chain, the analyst company sounded the alarm about an external force that will “stop this upward movement in its tracks.
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Glassnode: This could be the start of the next BTC bull market
As BTC/USD challenged the USD 11,500, Glassnode revealed several network fundamentals, which pointed the way to even stronger price performance.
Combined in its Glassnode Network Index (GNI), both liquidity and the overall health of the network were decidedly bullish. The lack of savings behaviour among the hodlers caused “sentiment”, another component of the index, to fall.
However, the overall GNI stood at 73/100, a 3 point change from the previous week.
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On the other hand, Compass’ tool continued to rise for the tenth consecutive week.
“After more than 2 months of indicating an upcoming price increase, the compass’ position in the bullish zone is finally being reflected in the BTC price,” summarized the update.
“The consistently strong fundamentals of the chain suggest that this may be the beginning of the next bull market.”
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Bitcoin remains macrosensitive
However, as buoyant as Bitcoin seemed, there was still room for historically sensitive factors to spoil investors’ fun again.
“However, despite the strong sentiment, a fall in traditional markets (as has been predicted by many analysts) could stop this bullish run in its tracks, as we saw on Black Thursday in March,” added Glassnode.
“Therefore, investors should be cautious in their optimism, given the fragility of financial markets today.
As reported by Cointelegraph, Bitcoin has shown a high correlation with certain macro-components, especially the equity markets and in particular the S&P 500. The past few weeks have provided a break in the trend as stocks have cooled but the BTC/USD is accelerating in line with safe havens such as gold.
Despite the fall in March, Bitcoin’s recovery beat the precious metal convincingly, with year-to-date returns now over 55%.
On Monday, several traders offered their most likely scenarios for Bitcoin’s short-term price trajectory. Previously, sentiment was already coalescing around a likely fresh bullish phase that would begin sometime in late August.
The number of active crypto currency traders in Japan decreased amidst the COVIDNOTICIAS
Before a state of emergency was officially declared to stop the spread of the pandemic in Japan, overall activity in cryptomoney exchanges declined, while there was a surge in fiat deposits.
According to data released in March 2020 by the Japan Virtual and Crypto Exchange Association (JVCEA), the number of active crypto currency accounts registered in the country decreased from 2,048,501 in February to 2,044,806 in March. This means that 3,695 fewer accounts may not have marketed any digital assets.
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Deposits increase, activity decreases
Yuya Hasegawa, a market analyst at bitbanc, reported that although activity among cryptomoney traders declined in March, the number of fiduciary deposits at exchanges increased in Japan.
In part, this may be because households were expecting to receive a JPY 100,000 stimulus payment, approximately USD 940, which had been proposed by the Japanese government. According to the analyst, many of these deposits did not stay long in the exchanges. Prime Minister Shinzo Abe declared a state of national emergency in Japan on April 8.