Bitcoins On-Chain Metrics hits records in many areas
In a time of misunderstandings, fears and greed in the crypto market, it is important to have a solid basis for making investment decisions, and this is where data from reliable cryptanalysts, be it Glassnode or Santiment, often discussed in our reviews, comes. To use.
Let’s start with pretty positive news from Glassnode, according to which the number of “non-zero” Bitcoin wallets reached an all-time high of 42,349,855 wallets. However, the previous record was set the day before, July 4, indicating a sustained trend and a massive emergence of new BTC investors. At the same time, wallets with balances above 0.01 BTC and 0.1 BTC are also growing, with values of 10,414,216 and 3,681,161 unique addresses, respectively.
📈 #Bitcoin $ BTC The number of non-zero addresses just reached an ATH of 42,349,855
Previous ATH of 42,349,354 was observed on July 4, 2022
See calculation: pic.twitter.com/HZasRYlB2l
– glassnode alerts (@glassnodealerts) July 5, 2022
On a less positive note, Glassnode reports that the Relative Unrealized Loss (RUL) figure reached a three-year high of 0.498. The calculation reflects the total loss in USD for all existing Bitcoins, whose price at the time of realization was higher than the current price of BTC. Of course, the value of 0.498 for RUL is not a limit in the bear market; during the previous massive market correction in 2018, the indicator reached values of 0.71. However, the further decline of the indicator quite clearly signaled the emergence of a new bullish momentum, especially when used in conjunction with relative unrealized gains (RUP) and the total net unrealized gains / losses (NUPL).
📈 #Bitcoin $ BTC Relatively unrealized loss (7d MA) just reached a 3-year high of 0.498
See calculation: pic.twitter.com/83X3Orgt1y
– glassnode alerts (@glassnodealerts) July 5, 2022
In negative news, Santiment reported today that Bitcoins average profitability is -45% so far this year. This is the lowest number since 2018. The market value of realized value (MVRV) was used to announce the diagnosis. On the one hand, this is a rather sad fact, but on the other hand, it is a good signal for possible entry into the market. The indicator is currently at the bottom of 2018, when the price of a BTC was only $ 3,600.
365-day return for the average #Bitcoin trader was +119% at the end of February 2021. 16 months later, the same measurement for the average trader is -45%. This reversal of -164% is the largest fluctuation since December 2018. pic.twitter.com/Lm8YLJ2HFg
– Santiment (@santimentfeed) July 5, 2022
On-chain calculations do not absolve investors from liability
It is important to understand that chain measurements are not a panacea. The market has barely reached similar indicators by the end of 2018 and may remain there for a long time, occasionally squeezing and winding up impatient investors. Nevertheless, careful application of proven indicators and careful analysis will definitely help any crypto enthusiast to at least significantly reduce the risk of loss and not sink into this raging crypto market.
