With bitcoin losing nearly half its value at one point a week ago and marking an 18-month low, the asset’s situation seemed gloomy at best. However, there are some positive signs as investors have been continuously withdrawing their BTC holdings from exchanges.
BTC on Exchanges Sees 3-Year Lows
A lot has been said about what transpired in the crypto market in the past several weeks, starting from the end of March when BTC was close to $50,000. After failing at that point, the asset began what later became the longest negative streak in terms of consecutive weekly candles in the red (9).
This massive downturn was exacerbated by the adverse developments surrounding the Terra landscape in May and Celsius (and now other lenders and crypto platforms) in June.
Now, though, there seems to be certain relief as BTC has recovered around $4,000. Moreover, data from Glassnode shows that investors have stopped transferring bitcoins onto exchanges. In fact, the number of coins sitting on trading platforms has declined substantially since before the most recent crash and is now down to a 3-year low of under 2.4 million BTC.
Previous 3-year low of 2,384,519.595 BTC was observed on 26 June 2022
— glassnode alerts (@glassnodealerts) June 27, 2022
At the same time, the analytics company informed that retail investors, which have shown a growing interest in the past few weeks, have indeed returned to the scene. The number of non-zero wallets has reached an all-time high of over 42 million, and so have the addresses holding at least one whole BTC (wholecoiners).
— glassnode alerts (@glassnodealerts) June 26, 2022
Bear Market Within a Normal Range
By concluding that the current bear market started after the ATH marked in November ($69,000), Glassnode noted in its latest post that this one had gone well within “historical norms and magnitude” compared to previous ones.
For example, the company asserted that the typical duration of a bear market is somewhere between 260 to 410 days. If we accept that the current one started in November, BTC should be closing down to the first number.
Additionally, previous bear markets have seen the asset’s price drop by 75% to up to 84% from the ATH. Now, the percentage went to almost 75% when bitcoin dipped to $17,500, which could signal that the bottom is in.