After a volatile and challenging month in June, Bitcoin prices have started to consolidate around the last cycle $20k ATH level, giving investors a moment to pause and reflect. Prices did trade higher this week, coming off a low of $18,067, and rallying to a high of $21,783.
The digital assets market has recently experienced a widespread deleveraging event, which has driven many valuations to lows considered extreme, in both a historical and statistical context. We recently released two research pieces that provide detailed analysis into this de-leveraging event, covering both the Bitcoin and Ethereum markets. These will provide additional context supporting this weeks newsletter:
- The Great DeFi Deleveraging covering the expulsion of over 60% of leverage accumulated in the Ethereum DeFi sector.
- A Bear of Historic Proportions where we explore the statistical deviation of Bitcoin and Ethereum from numerous long term means.
In this piece, we will provide an assessment of whether a Bitcoin bear market floor is likely to form within the current price range. We will draw on both on-chain, technical, and cyclical metrics. We will also gauge whether there is an observable loss of investor conviction, especially related to Long-Term Holders.
Note: This newsletter edition puts an extra focus on the application of Glassnode Advanced metrics, and has a more fully featured dashboard experience to help our members navigate these challenging market conditions.
The Week Onchain Newsletter has a live dashboard with all featured charts