Glassnode said the Bitcoin market underwent a “massive deleveraging event” this week putting pressure on miners, long-term holders, and the aggregate market.
“The falling dominoes of the current bear market are advancing to a new phase. Alongside miners, Long-Term Holders are now beginning to feel the pressure, forcing many of them to sell at an accelerating rate,” said the on-chain analytics company in a weekly blog post.
Bitcoin, Total Supply Held By Long-Term Holders — Courtesy Glassnode
Glassnode data indicate that long-term holder supply fell by 178,000 BTC over the last week, which equals to 1.31% of their entire holdings.
Market sentiment continues to remain marred by “Extreme Fear,” according to Alternative.me’s “Crypto & Fear Index.”
Cryptocurrency trader Justin Bennett said on Twitter that the current “bounce” appears to be weak and could be another “bull trap” before we see the next round of selling.
The analyst said the total cryptocurrency market capitalization could touch $670-$730 billion before a relief rally takes place.
This bounce looks weak so far. Most likely another bull trap before the next round of selling.
I still think we see $TOTAL reach the $670-$730B area before a relief rally. That’s 17-25% below current levels.