Bitcoin’s new high is above $118,000. However, on-chain data by Glassnode indicates that BTC volumes are still low.
The Bitcoin volume is still at historically low levels
Glassnode revealed this information just recently. volume Bitcoin-related data had fallen to annual lows and could be a sign of an impending summer slump. After the new record highs were reached, on-chain analysts have shared the updated data. reply An X user illustrating how volumes have changed.
On the chart it is clear that at the end June, the Spot Volumes and Futures Volumes, representing the Bitcoin trading activity on both spot and futures platform, fell dramatically and stayed low through early July.
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Nevertheless, with the most recent price break, both metrics showed an increase. This indicates that both spot and futures market activity have been boosted. Although there have been increases in both spot and futures trading, the volumes are still low when compared with historical levels.
Histoically, rallies are only sustained when traders pay attention to them. The reason for this is that the new activity provides fuel to these rallies.
“The takeaway here is that BTC hit an ATH despite thin liquidity – worth paying attention to,” Notes the analytics firm. Now it remains to see if activity will continue to increase in the next days, or if a lull has set in.
Glassnode pointed out that a major Bitcoin indicator is still outside of the zone of euphoria in another X post. This metric is called Net Unrealized Profit/Loss (NUPL) Long-term investors are those who have held the bonds for a long time.
As its name implies, NUPL is a measure of the unrealized profits or losses that BTC holders currently hold. This is the null of the long-term holders (LTHs) Who are those investors who have been holding coins for over 155 days?
The chart below shows the Bitcoin LTH NuPL trend over the last year.
The graph shows that the Bitcoin LTH NUPL is rising along with the recent price increase as LTH profits are increasing. The indicator is still at 0.69 despite the recent price rally, and below the level of 0.75 that historically separates euphoric market conditions.
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“This cycle has seen just ~30 days above the 0.75 threshold, compared to 228 days in the previous cycle,” The analytics company. Last time the metric exceeded this threshold was in February.
BTC price
Bitcoin’s price is hovering around $118,000 at the moment of this writing. This represents an increase of over 9% from the week before.
Charts from TradingView.com and Glassnode.com. Featured Image: Dall-E.
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Source: www.newsbtc.com
