Bears still dominate the cryptocurrency markets

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The bitcoin and cryptocurrency markets are retreating from the seven-week highs set over the weekend, and activity on the chain suggests the bears still have a lot of energy.

By the end of the week, about $ 50 billion had left the crypto space. Markets are falling this week, with total market cap believed to have fallen below $ 1.1 trillion.

After the steep drop in mid-June, cryptocurrency markets rose and fell and the resistance was too strong to overcome. Chain analytics provider Glassnode reported that the bears still have a firm grip on the market.

bear rescue rally

According to Glassnod, who analyzed data from the Bitcoin network in its weekly report (citing BTC), “the current activity of the network suggests that the influx of new requests is still low”.

The company analyzed network transactions, address activity, and fees, which are generally good indicators of the demand for Bitcoin and its siblings.

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He noted that despite the recent rally to $ 24,000, these trends are bearish, suggesting that “we are firmly in the bear market zone”. Bitcoin is currently trading at $ 22,880, a 200-week moving average of one ton. This indicator was the market low and strong support in the previous two bear markets, even though prices have fallen below.

Another key market indicator is the realized price, which measures the value of all coins in circulation at the price of the last movement, which is an approximation of how much the entire market has paid for its coins. According to charting site Woo Charts, BTC’s realized price is currently $ 21,807.

As for the last month of consolidation, Glassnode said that all that remained was a “stable base of more aggressive traders and investors”. These build up gradually, but there is no new demand that would drive prices up.

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Given the current state of the global economy, this scenario is bound to persist for some time. Once inflation is under control and traders and retail investors have more liquidity for risky assets, the demand for cryptocurrencies will increase.

cryptocurrency cooling

Markets retreat from seven-week highs. Bitcoin is stable despite Ethereum (ETH) gaining a paltry 2.6% reaching $ 1,600 in the Asian session on Wednesday morning. Solana (SOL) recorded the largest decline of up to 4% on news of the attack on the ecosystem.

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