• Bitcoin and Ether’s price and on-chain activity have seen little volatility since the beginning of the year.
• Glassnode’s lead analyst James Check noted that periods of low market activity are often followed by volatility storms.
• The firm released its first on-chain video report of 2023 on Tuesday, analyzing what could be indicators of an incoming crypto bull market.
As the crypto market starts off the year with low volatility and minimal activity, Glassnode has released its first on-chain video report of 2023, examining what could be signs of an incoming bull market.
The report, led by Glassnode’s lead analyst James Check, noted that Bitcoin and Ether’s price and on-chain activity have remained relatively stable since the year began. This is similar to other periods that have preceded explosive market movements. Check pointed out that Bitcoin has been stuck trading within a roughly $550 range since December 17, which is only a 3.4% range for almost an entire month. He noted that this is a rather remarkable development and could be a precursor to a period of high volatility.
In addition, Glassnode also reported that the crypto market has seen a steady increase in the number of entities holding large amounts of Bitcoin, as well as a higher number of addresses that are holding for the long term. The report further stated that the amount of Bitcoin held on exchanges has also seen a decrease, with the amount of Bitcoin held on exchanges now at its lowest point since February 2018.
These indicators, according to the firm, may signal a bull market on the horizon. Although the crypto market remains unpredictable, Glassnode believes that these signs could be the first steps towards a larger crypto market rally.
The firm also noted that it is important to remain realistic, as the crypto market is known to be highly volatile and unpredictable. The report concluded by emphasizing the importance of monitoring the market and on-chain activity to identify any further signs of a potential bull market.