Glassnode Analyst Says “Bitcoin Bottom Signal is Strengthening!”, Explains the Critical Threshold!

While the leading cryptocurrency Bitcoin remains above $60,000 following recent declines in June, an analyst has stated that a key indicator that could signal the bottom of a bear cycle in the Bitcoin market is beginning to re-emerge.

At this point, an analyst named Cryptovizart from the on-chain analytics platform Glassnode analyzed investors who have been holding BTC for 1-2 years, whom he calls holders.

The analyst noted that the number of loss-making sales by investors, particularly those who have held Bitcoin for the past 1-2 years, has decreased, and that this historically signals the final phase of bear markets.

According to the analyst, as the loss-taking due to the disappointment experienced by this group of investors increases, the selling pressure in the market reaches its peak. A decrease in sales from this group of investors is considered one of the earliest signals of a bottom formation.

According to the data, the losses of this group of investors showed a downward trend and a reversal after their 30-day moving average exceeded $75 million.

At this point, the analyst stated that this indicator has also signaled in past cycles that the peak selling period has ended and the market is beginning to form a bottom.

“…When the 30-day moving average (30D-SMA) of realized losses turns downwards and trades sideways, this has often been one of the clearest early signals that the most intense distribution phase in the market is over.”

However, the analyst noted that the decline in losses alone does not constitute a definitive bottom signal, but only serves as a reliable leading indicator in previous market cycles, adding that this data should be closely monitored.

Glassnode analysts also noted in their weekly report that the cost floor for short-term investors is around $69,000, and that this level could be a significant support and area of resistance for the Bitcoin price in the coming period.

*This is not investment advice.