Bitcoin Remains Bearish Because of Asian Traders: Glassnode Data
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As Bitcoin (BTC) continues to struggle with bearish pressure, Glasnode analysts have put forward some possible reasons behind the bearish sentiment and why $45K is the crucial level to defend.
On-chain analyst Johannes (@ultravirtu) took to Twitter last Friday to compare the activities of Asian, European, and American traders on BTC over the past few years.
“1/2 Some insights from @glassnode‘s engine room: breaking down #Bitcoin price movement by working hours reveals an unprecedented amount of selling from Asia as [the] force behind the current downturn.”
Citing Glassnode data, Johannes noted that a significant “amount of selling” from Asia is one of the primary catalysts of the benchmark cryptocurrency’s prevailing downbeat mood.
Meanwhile, this catalyst appears to be losing traction as time goes by, noting that the opposite sentiment, catalyzed by US and EU traders, is gaining momentum. This theory came from Bloomberg analysts based on their examination of intraday lows and highs in early March sessions.
Another Glassnode analyst, @TXMCtrades, highlighted his observations from monitoring the behavior of long and short-term BTC holders. The analyst argued that beginner Bitcoineers are now “underwater,” noting that:
“1/ Entering December, #Bitcoin sought its second bounce at the Short-Term Holder Cost Basis near $53K, which would signal demand.
This price level failed, and Short-Term Holders (owners of coins <5 months) now find themselves holding and spending in [the loss] loss.
What next?”
Key Bitcoin Levels to Watch — December 19
BTC remains restricted within a steep descending channel, as bulls hit another roadblock at $48K this morning. If the benchmark cryptocurrency fails to retest and break the $48K mark over the coming hours, we could record yet another bearish continuation over the new week.
That said, the primary target for bears is the $45K support. A break below that level would open the doors to $43K – $40K and cement a bearish bias into January for the benchmark cryptocurrency. On the flip side, only a sustained break above the $53K top can negate the current bearish bias.
Meanwhile, my resistance levels are at $48,000, $48,500, and $49,500, and my key support levels are at $46,300, $46,000, and $45,000.
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