Bitcoin Market Health
Bitcoin spent yet another week fluctuating around the $9200 mark, starting off Week 29 at $9260 and ending it around $9185. It barely went past $9300 on the higher end and $9100 on the lower end, mostly staying within +/-$100 of the $9200 price point.
Bitcoin on-chain fundamentals saw a slight increase during Week 29. GNI gained 2 points, bringing it up to a score of 62. While the Sentiment subindex brought down the index this past week, Network Health and Liquidity both increased, leading to an overall climb in the health of the Bitcoin network.
Network Health climbed by 8 points throughout the past week, driven by a 20 point increase in the Network Growth subcategory. This growth was in turn caused by a steep increase in the number of new entities joining the network, indicating high adoption.
Liquidity also saw a small increase over Week 29, climbing by 3 points. Transaction liquidity increased slightly, but trading liquidity saw the larger increase over the past week, gaining 11 points as the supply of stablecoins continued to increase, providing liquidity to the BTC markets.
Sentiment saw a marked decrease over the past week, unlike the other subindices, with a 10 point decrease resulting largely from a drop in the Saving Behavior subcategory. This was caused by a drop in hodler accumulation - however, net accumulation by hodlers is still positive.
The compass once again remained in Regime 1 for Week 29, marking its 8th consecutive week in this regime.
While price performance slipped slightly from the previous week, an increase in GNI means that the compass for Week 29 remains comfortably in the green "bullish" zone.
Once again, however, bitcoin's uncharacteristically stable price casts doubts on its ability to break out past the $10k mark. While on-chain fundamentals remain healthy and overall crypto market liquidity is high, a psychological barrier seems to be blocking a bull run for the time being.
Bitcoin's Reserve Risk Grows More Favorable
Reserve Risk is used to assess the confidence of long-term holders relative to the price of BTC. Low Reserve Risk means that confidence is high and price is low, indicating an attractive risk/reward ratio in favor of investing.
BTC's Reserve Risk has been in the green zone since September 2019 and is still declining, indicating that the risk of investing in BTC is currently low relative to the prospective reward.
This metric supports the position of the Glassnode compass in the green "bullish" zone, as investing in BTC now is a solid proposition according to its Reserve Risk score.
Metrics and Assets
- Percent Entities in Profit (BTC) - New metric showing the proportion of entities who are currently in a state of profit.
- New Account-Based metrics (BTC, ETH) - Account-Based versions of Unrealized Profit, Unrealized Loss, NUPL, LTH-NUPL, and STH-NUPL.
- New Futures metrics (BTC) - Huobi (Perpetual Open Interest, Perpetual Funding Rate) and Bitflyer (Daily Volume, Latest 24h Volume).
- Glassnode API - Reduced caching time to 1 minute for faster responses.
- Compare feature - Added resolution dropdown for each trace.
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