Market Analysis

Why $20.8K is a critical level for Bitcoin | Find out now on Market Talks with Charlie Burton

What is the critical support level for Bitcoin and what happens if the market drops below it? Join us as we discuss this and other topics with Tim Warren, co-host of Coffee N Crypto, and Charlie Burton.

In this week’s episode of Market Talks, we welcome professional trader Charlie Burton.

Charlie is a professional trader with 24 years of experience and has been trading full-time since 2001. He is the founder of EzeeTrader and Charlie Burton Trading. He is also undefeated in the annual London Forex show live trade-off for the five years it was running. He has also been featured in the hugely popular BBC documentary “Trader, Millions by the Minute.” Charlie is one of the very few trading educators who is also a professional money manager trading FCA-regulated capital.

The main topic of discussion with Charlie will be the current support level for Bitcoin (BTC) and why it is so critical. If Bitcoin goes below its current support, what are other major price levels you should be keeping an eye on? We also get his insights into what caused the collapse of the recent bear market relief rally.

There are a few major market events that are scheduled for the last few days of August — we ask Charlie which ones he is going to be keeping an eye on and how they might affect the market and more importantly his trading strategy. Will things in the crypto market and traditional markets improve as we move toward the end of the year or can we expect more volatility and downward price action?

Everyone has been talking about Ethereum’s (ETH) performance recently and how it has outperformed Bitcoin, so we ask Charlie how he compares Ethereum’s performance to Bitcoin’s from a trader’s perspective and whether he changed his strategy slightly because of it.

China has been in the news again recently due to the potential looming collapse of its economy. Being the superpower it is and having the second largest economy in the world, the possible collapse of China’s economyis possibility is bound to make waves in the markets. We ask Charlie what his thoughts on the situation are and whether he’s keeping a close eye on China.

Being a professional trader, one must have strategies for every trade. But should your trading strategy for crypto markets differ from traditional markets and if so, how should they be different? These are uncertain times and everyone would like an insight into how professional trader functions during these times, which is why we get the insights from the professional himself.

Tune in to have your voice heard. We’ll be taking your questions and comments throughout the show, so be sure to have them ready to go.

Market Talks with Coffee ‘N’ Crypto’s Tim Warren streams live every Thursday at 12 pm ET (4:00 pm UTC). Each week, we feature interviews with some of the most influential and inspiring people from the crypto and blockchain industry. So, be sure to head on over to Cointelegraph’s YouTube page and smash those like and subscribe buttons for all our future videos and updates.

What crashed the crypto relief rally? | Find out now on The Market Report

On this week’s episode of “The Market Report,” Cointelegraph’s resident experts discuss what factors lead to the collapse of the bear market rally.

On this week’s “The Market Report” show, Cointelegraph’s resident experts discuss some of the main factors that contributed to the collapse of this bear market rally.

To kick things off, we broke down the latest news in the markets this week

Bitcoin (BTC) to lose $21K despite miners’ capitulation exit? Five things to know in Bitcoin this week. Miners are a glimmer of hope in a barren Bitcoin landscape this week ahead of a key Federal Reserve event in Jackson Hole. After dipping below $21,000 over the weekend, the largest cryptocurrency is consolidating around 10% lower than a week ago, and the fear across crypto markets is clearly visible. As August nears the end, what will September bring in terms of inflation, price volatility and other macro triggers?

Data shows Bitcoin and altcoins at risk of a 20% drop to new yearly lows. The total crypto market capitalization dropped to the $1 trillion support, and weak stablecoin demand and a largely absent funding rate reflect traders’ negative sentiment. Will crypto investors’ sentiment shift toward more bearish? Are we on our way to retesting yearly lows?

Cryptocurrencies react to Jackson Hole, Fed rate hike plans and a weakening bear market rally. The price action in Bitcoin, altcoins and stocks reflects investors’ anxiety over the Fed’s rate hike plans, a weakening bear market rally and this week’s Jackson Hole economic symposium. Is the fear of future interest rate hikes by the Federal Reserve making investors nervous? Is this macro uncertainty keeping the institutional investors away from the crypto markets?

Bitcoin whales attack sellers at $22.3K as the euro drops below USD parity. Bitcoin struggles to make a return to higher levels despite geopolitical uncertainty striking the eurozone. The weekend lows however preserved the lows from July. Could this mean that the bear market rally could make a return? What happens if Bitcoin moves above the critical 200-week moving average (WMA)?

Next up is a new segment called “Quick Crypto Tips,” which aims to give newcomers to the crypto industry quick and easy tips to get the most out of their experience. This week’s tip: Be wary of exchanges.

Market expert Marcel Pechman then carefully examines the Bitcoin and Ether (ETH) markets. Are the current market conditions bullish or bearish? What is the outlook for the next few months? Pechman is here to break it down. The experts also go over some markets news to bring you up to date on the latest regarding the top two cryptocurrencies.

Lastly, we’ve got insights from Cointelegraph Markets Pro, a platform for crypto traders who want to stay one step ahead of the market. The analysts use Cointelegraph Markets Pro to identify two altcoins that stood out this week: DeXe’s DEXE and DIGG’s DIGG.

Do you have a question about a coin or topic not covered here? Don’t worry. Join the YouTube chat room, and write your questions there. The person with the most interesting comment or question will be given a $50 CT store gift voucher.

The Market Report streams live every Tuesday at 12:00 pm ET (4:00 pm UTC), so be sure to head on over to Cointelegraph’s YouTube page and smash those like and subscribe buttons for all our future videos and updates.

3 reasons why the Bitcoin price bottom is not in

Bear market fractals, weak technicals and macro risks continue to signal more pain for Bitcoin ahead.

Bitcoin (BTC) recovered modestly on Aug. 20 but remained on course to log its worst weekly performance in the last two months.

Bitcoin hash ribbons flash bottom signal

On the daily chart, BTC’s price climbed 2.58% to $21,372 per token but was still down by nearly 14.5% week-to-date, its worst weekly returns since mid August. Nonetheless, some on-chain indicators suggest that Bitcoin’s correction phase could be coming to an end.

That includes Hash Ribbons, a metric that tracks Bitcoin’s hash rate to determine whether miners are in accumulation or capitulation mode. As of Aug. 20, the metric is showing that the miners’ capitulation is over for the first time since August 2021, which could result in the price momentum switching from negative to positive.

Bitcoin Hash Ribbon. Source: Glassnode

Nonetheless, Bitcoin has been unable to shrug off a flurry of prevailing negative indicators, ranging from negative technical setups to its continued exposure to macro risks. Therefore, despite optimistic on-chain metrics, a bearish continuation cannot be ruled out. 

Here are three reasons why Bitcoin’s market bottom may not be in yet.

BTC price rising wedge breaks down

Bitcoin’s price decline this week has triggered a rising wedge breakdown, suggesting more losses for the crypto in the coming weeks.

Rising wedges are bearish reversal patterns that form after the price rises inside a contracting, ascending channel but resolve after the price breaks out of it to the downside, which could result in a drop to as low as the maximum wedge’s height.

BTC/USD daily price chart featuring “rising wedge” breakdown setup. Source: TradingView

Applying the technical principles on the BTC chart above presents $17,600 as the rising wedge breakdown target. In other words, the Bitcoin price could fall by approximately 25% by September.

Bitcoin bulls are misjudging the Fed

Bitcoin had surged by approximately 45% during its rising wedge formation, after bottoming out locally at around $17,500 in June.

Interestingly, the period of Bitcoin’s upside moves coincided with investors’ growing expectations that inflation has peaked—and that the Federal Reserve would start cutting interest rates as soon as March 2023.

The expectations emerged from the Fed Chairman Jerome Powell’s FOMC statement from July 27. 

Powell:

“As the stance of monetary policy tightens further, it likely will become appropriate to slow the pace of increases while we assess how our cumulative policy adjustments are affecting the economy and inflation.”

Nonetheless, the most recent Fed dot plot shows that most officials anticipate the rates to reach 3.75% by the end of 2023 before sliding back down to 3.4% in 2024. Therefore, the prospects of rate cuts remain speculative.

Implied Fed funds target rate. Source: Federal Reserve

St Louis Fed president James Bullard also noted that he would support a third consecutive 75 basis point raise at the central bank’s policy meeting in September. The statement falls in line with the Fed’s commitment to bring inflation down to 2% from its current 8.5% level.

Related: Options data shows Bitcoin’s short-term uptrend is at risk if BTC falls below $23K

In other words, Bitcoin and other risk-on assets, which fell into a bear market territory when the Fed began an aggressive tightening cycle in March, should remain under pressure for the next few years.

If history is any indicator…

The ongoing Bitcoin price recovery risks turning into a false bullish signal given the asset’s similar rebounds during previous bear markets.

BTC/USD weekly price chart. Source: TradingView

BTC’s price rebounded by nearly 100%—from around $6,000 to over $11,500—during the 2018 bear market cycle, only to wipe off the gains entirely and drop toward $3,200. Notably, similar rebounds and corrections also took place in 2019 and 2022.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

A sharp drop in TVL and DApp use preceded Avalanche’s (AVAX) 16% correction

AVAX price gave up recent gains after correcting by 16% and the network’s declining TVL and DApp use suggest that the protocol is losing ground versus its competitors.

After an impressive 73% rally between July 13 and Aug. 13, Avalanche (AVAX) has faced a 16% rejection from the $30.30 resistance level. Some analysts will try to pin the correction as a “technical adjustment,” but the network’s deposits and decentralized applications reflect worsening conditions.

Avalanche (AVAX) index, USD. Source: TradingView

To date, Avalanche remains 83% below its November 2021 all-time high at $148. More data than technical analysis can be analyzed to explain the 16% price drop, so let’s take a look at the network’s use in terms of deposits and users.

The decentralized application (DApp) platform is still a top-15 contender with a $7.2 billion market capitalization. Meanwhile, Solana (SOL), another proof-of-work (PoW) layer-1 platform, holds a $14.2 billion market cap, which is nearly twice as large as Avalanche’s.

Avalanche’s TVL dropped 40% in two months

Some analysts tend to give too much weight to the total value locked (TVL) metic and although this might hold relevance for the decentralized finance (DeFi) industry, it is seldom required for nonfungible token (NFT) minting, digital item marketplaces, crypto games, gambling and social applications.

Using the layer-2 solution Polygon (MATIC) as a proxy, it currently holds a $2.2 billion TVL while MATIC’s market cap stands at $7.2 billion; thus, a 3.3x MCap/TVL ratio. Curiously, the same ratio applies to Avalanche, which currently holds a similar $2.2 billion TVL and $7.2 billion capitalization.

Avalanche Total Value Locked, AVAX. Source: DefiLlama

Avalanche’s primary DApp metric began to display weakness in late July after the TVL dropped below 110 million AVAX. In two months, the current 85.4 million is a sharp 40% cut and signals that investors have been withdrawing coins from the network’s smart contract applications.

The chart above shows how Avalanche’s smart contracts deposits peaked at 175 million AVAX on June 13, followed by a constant decline. In dollar terms, the current $2.2 billion TVL is the lowest number since September 2021. This number represents 8.2% of the aggregate TVL (excluding Ethereum), according to data from DefiLlama.

Initially, the data seems disappointing, especially considering Solana’s network TVL reduced by 27% in the same period in SOL terms, and Ethereum’s TVL declined by 33% in ETH deposits.

DApp use has also underperformed competing chains

To confirm whether the TVL drop in Avalanche is troublesome, one should analyze a few DApp usage metrics.

Avalanche DApps 30-day on-chain data. Source: DappRadar

As shown by DappRadar, on Aug. 18, the number of Avalanche network addresses interacting with decentralized applications declined by 5% versus the previous month. In comparison, Ethereum posted a 4% increase and Polygon users gained 10%.

Avalanche’s TVL has been hit the hardest compared to similar smart contract platforms and the number of active addresses interacting with most DApps only surpassed 20,000 in one case. This data should be a warning signal for investors betting on this automated blockchain execution solution.

Polygon, on the other hand, racked up 12 decentralized applications with 20,000 or mo active addresses in the same time period. The findings above suggest that Avalanche is losing ground versus competing chains and this adds further reason for the recent 16% sell-off.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

Bitcoin likely to transition to a risk-off asset in H2 2022, says Bloomberg analyst

As the global economy moves into a recession in the second half of 2002, Bitcoin will likely rally alongside gold and treasury bonds, according to Mike McGlone, a senior commodity strategist at Bloomberg.

Bitcoin is likely to transition from a risk-on to a risk-off asset in the second half of 2022, as the macroeconomic environment is rapidly shifting towards a recession, said Mike McGlone, senior commodity strategist at Bloomberg, in a recent interview with Cointelegraph. McGlone predicted:

“ I see it transitioning to be more of a risk-off asset like bonds and gold, then less of a risk-on asset like the stock market.”

According to the analyst, the crypto market has flushed out most of the speculative excesses that marked 2021 and it is now ripe for a fresh rally. McGlone also pointed out that the Fed’s aggressive hiking of interest rates will lead the global economy to a deflationary recession, which will ultimately favor Bitcoin:

“I fully expect we’re going to have a pretty severe recession globally, which probably will make Bitcoin shine […] along with gold and U.S. Treasury long bonds.”

Don’t forget to check out the full interview on our YouTube channel and don’t forget to subscribe! 

Interview with Kevin O’Leary: $28K Bitcoin next or lower? | Market Talks with Crypto Jebb

Kevin O’Leary gives his outlook on the current state of the crypto market in this exclusive live interview with Cointelegraph.

With the price of Bitcoin (BTC) holding above $22,000, more and more market players are turning bullish again. Does this mean that we could see BTC go to $28,000 in the short term or will it fall below its current levels? Join us as we discuss this and other topics with Crypto Jebb and Mr. Wonderful, himself, Kevin O’Leary.

In this week’s episode of Market Talks, we welcome businessman, entrepreneur, author, winemaker and television presenter, Mr. Kevin O’Leary.

O’Leary, best known as the shark on the hit reality TV show Shark Tank, is the chairman of O’Shares Investments and a strategic investor in WonderFi. Mr. O’Leary’s success story starts where most entrepreneurs begin — with a big idea and zero cash.

The main topic of discussion on the show is whether BTC will go as high as $28,000 or re-test the bear market lows of June. With so much uncertainty in the market right now, we also discuss the best way to navigate digital assets for the remainder of the year.

Following the collapse of Terra (Luna) — now renamed Terra Classic (LUNC) — and the insolvencies of Celsius and Three Arrows Capital, we ask Kevin if he thinks, from a business perspective, these companies should have been bailed out.

Although Mr. O’Leary is a huge supporter of Bitcoin and cryptocurrencies, we have still not seen large institutional investors in the space yet. As such, we ask Kevin what needs to happen before large institutions enter the crypto market. We also pick his brain on the regulatory outlook for crypto in the United States and abroad.

Ether (ETH) has been a top crypto performer in recent weeks, but are the gains justified, or are they merely a byproduct of hype surrounding the Merge? We ask Kevin what he thinks about the future of Ethereum and if a $2,000 ETH is possible in 2022.

Tune in to have your voice heard. We’ll be taking your questions and comments throughout the show, so be sure to have them ready to go.

Market Talks with Crypto Jebb streams live every Thursday at 12 pm ET (4:00 pm UTC). Each week, we feature interviews with some of the most influential and inspiring people from the crypto and blockchain industry. So, be sure to head on over to Cointelegraph’s YouTube page and smash those like and subscribe buttons for all our future videos and updates.

Pro traders may use this ‘risk averse’ Ethereum options strategy to play the Merge

Ethereum’s Merge upgrade is expected to induce volatility in ETH price, but options traders can safely remain long by using this strategy.

Ether (ETH) is reaching a make-it or break-it point as the network moves away from proof-of-work (PoW) mining. Unfortunately, many novice traders tend to miss the mark when creating strategies to maximize gains on potential positive developments.

For example, buying ETH derivatives contracts is a cheap and easy mechanism to maximize gains. The perpetual futures are often used to leverage positions, and one can easily increase profits five-fold.

So, why not use inverse swaps? The main reason is the threat of forced liquidation. If the price of ETH drops 19% from the entry point, the leveraged buyer loses the entire investment.

The main problem is Ether’s volatility and its strong price fluctuations. For example, since July 2021, the ETH price crashed 19% from its starting point within 20 days in 118 out of 365 days. This means that any 5x leverage long position will have been forcefully terminated.

How pro traders play the “risk reversal” options strategy

Despite the consensus that crypto derivatives are mainly used for gambling and excessive leverage, these instruments were initially designed for hedging.

Options trading presents opportunities for investors to protect their positions from steep price drops and even profit from increased volatility. These more advanced investment strategies usually involve more than one instrument and are commonly known as “structures.”

Investors rely on the “risk reversal” options strategy to hedge losses from unexpected price swings. The holder benefits from being long on the call (buy) options, but the cost for those is covered by selling a put (sell) option. In short, this setup eliminates the risk of ETH trading sideways, but it does carry a moderate loss if the asset trades down.

Profit and loss estimate. Source: Deribit Position Builder

The above trade focuses exclusively on the Aug. 26 options, but investors will find similar patterns using different maturities. Ether was trading at $1,729 when the pricing took place.

First, the trader needs to buy protection from a downside move by buying 10.2 ETH put $1,500 options contracts. Then, the trader will sell 9 ETH put $1,700 options contracts to net the returns above this level. Finally, the trader should buy 10 call $2,200 options contracts for positive price exposure.

It is important to remember that all options have a set expiry date, so the asset’s price appreciation must happen during the defined period.

Investors are protected from a price drop below $1,500

That options structure results in neither a gain nor a loss between $1,700 and $2,200, up 27%. Thus, the investor is betting that Ether’s price on Aug. 26 at 8:00 am UTC will be above that range, gaining exposure to unlimited profits and a maximum 1.185 ETH loss.

If Ether’s price rallies toward $2,490, up 44%, this investment would result in a 1.185 ETH net gain—covering the maximum loss. Moreover, a 56% pump to $2,700 would bring an ETH 1.87 net profit. The main benefit for the holder is the limited downside.

Even though there is no cost associated with this options structure, the exchange will require a margin deposit of up to 1.185 ETH to cover potential losses.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

Bitcoin price falls under $21K, bringing more capitulation or just consolidation?

Multiple indicators and on-chain metrics reflect confluence pointing to an improving market, but technical analysis still raises the possibility of Bitcoin dropping to new yearly lows.

On July 26, Bitcoin (BTC) price dropped below $21,000, giving back the majority of the gains accrued in the previous week and returning to the $23,300 to $18,500 range that Glassnode analysts describe as “the Week 30 high and Week 30 low.” 

A handful of analysts and traders attribute the July 26 to July 27 Federal Open Market Committee (FOMC) meeting and the expected Federal Reserve rate hike as the primary reasons for the current sell-off.

Barring the announcement that the United States economy has entered a recession, a few traders believe that the expected 75 to 100 basis point (BPS) hike will be followed by a relief rally that could see BTC, Ether (ETH) and other large-cap altcoins snap back to the top of their current range. Of course, this sentiment reflects more speculation than sound analysis, so take it with a grain of salt.

Bitcoin week 30 price range. Source: Glassnode

Given that the BTC price is simply continuing to trade in the same range that it has been in for the past 42 days, the real question is whether the market will bring more consolidation or another round of capitulation.

In its July 26 on-chain newsletter, Glassnode analysts posit that investors can find their “conviction through confluence” of multiple technical and on-chain metrics, which suggest the peak of capitulation has long passed.

According to the analysts, rapid deleveraging threw many metrics into “extreme statistical deviations” and with the worst of the selling possibly behind us, Bitcoin price returning to the high $20,000 zone was expected.

Glassnode notes that:

“The June leg down in price action has produced the lowest 4-yr rolling Z-Score value on record.”

And the analysts explained that the 4-year rolling MVRV Z-score “signaled undervaluation for all bear cycle bottoms, including 2015, 2018, and the March 2020 flash crash.”

Bitcoin MVRV Z-Score 4 year Rolling chart. Source: Glassnode

When compared against various cohorts of long and short-term sellers and metrics like Realised Price, Mayer Multiple and longer-term daily and weekly moving averages, Glassnode suggests that confluence in the indicators and historical data point to growing bullish momentum.

On-chain data spots a bottom, but what does technical analysis say?

From the perspective of technical analysis, Bitcoin’s move to $24,200 presented a brief breakout from the current range, but the inability to sustain momentum at this level presented the necessary alternative of a lower support retest at the range midline near the 20-day moving average of $21,500.

According to independent market analyst Michaël van de Poppe, $21,600 was the area for BTC to hold. Below this, the asset’s price action is dependent upon commentary from this week’s FOMC comments.

CryptoISO expressed a similar sentiment regarding the correlation of equities to Bitcoin and the importance of the $21,500 zone for BTC price.

Fractal lovers will note that the price action within the current range is eerily similar to the May 8 through July 12 range-bound trading and following breakdown that took place on July 12, but analysts would quickly point out that back-to-back calamities like Voyager, Celsius and 3AC blowing up played a significant role in that sell-off, whereas now there appear to be no discernible black swan events on the horizon.

BTC/USDT daily chart. Source: Tradingview

Regardless, both reflect periods of 34 to 42 days of sideways trading, and on many occasions, veteran trader Peter Brandt has identified the current market structure as a “bearish rectangle” technical analysis pattern.

Bearish rectangle breakdown. Source: MoneyControl.com

In the event that the pattern breaks to the downside from the current range, this would place the price in the $14,500 to $13,000 zone some traders have been lusting for.

BTC/USDT daily chart. Source: Tradingview

Ultimately, last week’s range breakout to $24,200 on July 20 pierced the upper band of the Bollinger Bands momentum indicator and now that price is below the midline, there is an increased chance that BTC could trade down to the lower band which conveniently resides at the bottom of the current range of $24,200 to $18,600.

Trading within range is not much to worry about until a breakout or breakdown catalyst emerges. Perhaps July 27’s earnings from big tech companies, the state of the market at the opening bell and comments from the FOMC will determine the direction Bitcoin decides to take. 

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

A short-term BTC rally or trend reversal? Find out now on ‘Market Talks’ with Crypto Jebb

Wondering if the recent Bitcoin price movement is going to keep moving forward, or if this is just another bear trap? Join the conversation with Nicholas Merten from ‘DataDash’ and get answers about the recent market movements.

The latest episode of Market Talks welcomes Nicholas Merten, the founder of DataDash, one of the largest cryptocurrency YouTube channels.

Merten is an international speaker, thought leader and crypto analyst. He has utilized his 10-plus years of experience in traditional markets to understand the potential of cryptocurrencies and help his 515,000 YouTube subscribers make better investment decisions.

One of the topics up for discussion with Merten isthe recent Bitcoin (BTC) price rally. Are the markets finally out of the sideways trend it’s been stuck in for months, or is this just another bull trap forming, with BTC to head back down below $20,000?

With all seasoned traders and experts eyeing the BTC 200-week moving average, Merten is asked the significance of this indicator and why many consider it to be so important. They also get into where he sees BTC heading in the near future, toward $30,000 or back down to $17,000?

Another topic up for discussion is whether retail investors are starting to rush back into the market — could that be playing a part in the price rally? Ether (ETH) has been performing exceptionally well recently, with more updates about its move from a proof-of-work protocol to proof-of-stake. Could Ether be the one leading the markets this time, as opposed to Bitcoin? The hosts will be taking a look at the ETH chart to get a better picture.

With the rise in Bitcoin’s price, altcoins are never far behind. Jebb and Merten will take a look at some of the best-performing altcoins and figure out which ones have yet to break out. Speaking of altcoins, Polygon’s MATIC has seen a recent price rally toward the upside after news that it was accepted into the Disney accelerator program — the only blockchain platform to do so. They will be discussing what this could mean for the platform and take a look at the chart as well.

Tune in to have your voice heard. The hosts be taking questions and comments throughout the show, so be sure to have them ready to go.

Market Talks with Crypto Jebb streams live every Thursday at 4:00 pm UTC. A featured interview is posted each week with some of the most influential and inspiring people from the crypto and blockchain industry. So, be sure to head on over to Cointelegraph’s YouTube page and subscribe for all future videos and updates.

Despite ‘worst bear market ever,’ Bitcoin has become more resilient, Glassnode analyst says

Though on-chain metrics point to the worst Bitcoin bear market on record, they also highlight hodlers’ growing resilience.

While the current bear market may be the worst on record, on-chain metrics signal that the Bitcoin (BTC) network is becoming increasingly resilient, said Glassnode analyst James Check during a recent interview with Cointelegraph. 

In particular, Check refers to the amount of Bitcoin holders who don’t sell even in extreme market conditions, which has become much higher than in previous bear markets. 

“Cycle after cycle, that floor of hodlers is higher, the amount of activity is higher,” Check said.

Check also points out that shrimps, the entities who hold less than one Bitcoin, are accumulating at a record pace, surpassing the levels of the 2017 bull market’s peak.

“The shrimp are essentially seeing this is a an immense period of value,” he explained. 

Check out the full interview on our YouTube channel and don’t forget to subscribe!