CryptocurrencyNumber Of Active Entities Remain In Bear Market Channel

Number Of Active Entities Remain In Bear Market Channel


Data shows the number of active Bitcoin entities has been steadily going up, but the growth pattern still remains in the bear market channel.

Number Of Active Bitcoin Entities Continues To Remain In Bear Market Channel

As per the latest weekly report from Glassnode, the number of active BTC entities has observed a persistent user growth recently.

The “number of active entities” is an indicator that tells us about the number of daily active users on the Bitcoin network.

An entity here refers to a collection of addresses held by a single investor, so the number of entities isn’t the same as the total number of addresses on the network.

When the value of this indicator rises, it means more holders are making trades right now. A sharp growth can suggest a large number of new investors are ushering into the Bitcoin market.

On the other hand, decreasing values of the metric implies interest around the crypto is diminishing as investors go dormant.

Related Reading | On-chain Data Suggests Bitcoin Miners Were Behind The Selloff

Now, here is a chart that shows the trend in the number of active Bitcoin entities over the past several years:

Bitcoin Number Of Active Entities

Looks like the metric has observed some growth recently | Source: Glassnode's The Week Onchain - Week 15, 2022

As you can see in the above graph, the number of active Bitcoin entities has been steadily going up in recent weeks.

However, the value of the metric is still within a range that the report refers to as the “bear market channel.” As the name suggests, the indicator is usually inside this range during bearish periods where a persistent user growth is observed, but nothing too explosive.

During the bull market hype, on the contrary, the number of active entities usually shows a very rapid rise. But near the peak, the indicator also crashes down sharply.

Related Reading | Price Of Bitcoin Retreats Under $42,000 As Enthusiasm From Miami Event Fizzles

Recently, the trend has been that of a sharp growth in the Bitcoin active entities, but as pointed out earlier, the current value is still at the upper end of the bear market channel

Nonetheless, the report notes that any expansion here would mean the indicator will finally escape this range, something that could prove to be constructive for the price of the coin.

BTC Price

At the time of writing, Bitcoin’s price floats around $40.4k, down 14% in the past week. Over the last month, the crypto has gained 3% in value.

The below chart shows the trend in the price of the coin over the past five days.

Bitcoin Price Chart

Bitcoin seems to have plunged down over the last couple of days | Source: BTCUSD on TradingView
Featured image from Unsplash.com, charts from TradingView.com, Glassnode.com



Original Source Link

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest News

WHO: 2nd COVID booster for most vulnerable offers benefits

An expert group convened by the World Health Organization says there may be some benefit in giving a...

A Denisovan girl’s fossil tooth may have been unearthed in Laos

A molar tooth from Southeast Asia probably belonged to a member of a cryptic group of Stone Age...

The Worst State To Live In When It Comes To Your Money

Victorian style houses in the city of...

Queen Elizabeth Makes Special Appearance At London Tube Stop

Queen Elizabeth continued her jovial return to public engagements with a surprise outing to Paddington Station in London...

Amber Heard’s New PR Guy Hired To Trash Johnny Depp Is Capital P Problematic!!

The man hired by Amber Heard to spin her side of the ongoing legal battle involving Johnny Depp reportedly has...

Must Read

- Advertisement -

You might also likeRELATED
Recommended to you