The latest edition of crypto analytic firm Glassnode’s On-Chain report points to a potentially bullish indicator for bitcoin.
According to the report published June 29, bitcoin’s on-chain fundamentals dropped slightly last week in response to the brief price tumble below $9,000. Bitcoin’s GNI decreased by 2 points, falling into the neutral zone in response to a decrease in the coin’s “Sentiment” subindex.
While on-chain fundamentals took a small dip, Glassnode found that network health increased during the past week with a slight uptick in network activity. Liquidity also saw the largest increase of all subindices, driven by an increase in off-chain trading liquidity to drive the metric six points higher.
Investor sentiment towards BTC suffered its greatest loss last week, declining 20 points to settle at a score fo 22. According to the report, the decrease was caused by a drop in market-value-to-realizd-value (MVRV) and the supply of total BTC in profit. However, the report claims long-term sentiment towards bitcoin remains positive.
Continued stability, both on & off-chain, has solidified #Bitcoin's position in the bullish Regime 1.
While this will not necessarily translate to immediate gains for $BTC's price, the long-term outlook is optimistic.
Read more in The Week On–Chain 👇https://t.co/owA1vNORsa pic.twitter.com/39ksFiAZ98
— glassnode (@glassnode) June 30, 2020
Despite the dip in investor sentiment, Glassnode reported a potentially bullish indicator for bitcoin’s outlook. BTC reached a new high for Glassnode’s Supply Last Active metric last week, which correlates to how long BTC have remained unmoved.
The report reads,
These show that over 61% of BTC haven't moved in over a year; a new all-time high for this metric.Moreover, the number of BTC which haven't moved in 2+ years is at 44%, approaching a new ATH and showing that we are in a period of sustained HODLing.
The report claims the last time the number of coins last active 1+ years ago exceeded 60% was in early 2016, just before the price started increasing on its way to the $20,000 all-time high.
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