Why does Glassnode predict Bitcoin's upward rally to end soon?


Bitcoin's price rose by $ 2,500 and reached $ 57,000 an hour after the US Fed's meeting yesterday. As a result, its dynamics amounted to 3.5%. The main digital asset also continued to further rise on Thursday morning. Earlier, it was already attempting to reach a new record of $ 59,000.

However, Glassnode's analysts are not convinced with the stable growth of this cryptocurrency, at least at this period of time. They believe that BTC has already set its historical record in March, so it is unlikely to outdo itself again. In their opinion, Bitcoin has reached its peak level.

Experts came to this conclusion based on a study. The focus of Glassnode analysts was on the key phases of long-term holders' activity. The situation that has developed this year causes a clear deja vu among experts. They observed exactly the same picture at the end of 2017, when well-known events happened.

Let us briefly consider these stages. During the active phase of Sell the Rally, which comes immediately after taking a new historical record, investors prefer to sell Bitcoins, which provoke a correction. This is followed by a quite slow New Paradigm phase. Experts say that this is currently where the market is. Investors are showing relatively low activity, waiting for the rally to continue. But, as an example from history shows, the opposite happens. After reaching a new peak, Bitcoin is no longer able to further rise and starts to decline.

Such a downward movement triggers the Ouch phase. It usually leads to investors' misunderstanding of the trend, and therefore, to a massive parting with Bitcoins. In 2017, the main digital coin collapsed to $ 6,000 during this phase. In this case, its price fell by more than three times.

However, experts still cannot say with absolute probability that the current scenario will unfold exactly like the events of four years ago. This is due to the constantly changing crypto market: there are now new trends and traders have more opportunities. Therefore, today's situation still has some significant differences from the previous rally. First, modern players have more tools that allow them to manage risks. Secondly, institutional investors have already appeared on the market, which could literally be counted on one hand in 2017.

The material has been provided by InstaForex Company - www.instaforex.com