Is Bitcoin Gearing Up to Exit the Current Bottom?

Glassnode is a company that has taken Bitcoin (BTC), to the psychological price of $20K. released its weekly on-chain report titled “Hammering Out The Bottom,” scrutinizing the stakes and the risks that may lay on the road ahead.

The market insight provider said:

“Bitcoin has rallied back above the $20k level this week, pushing off a low of $19,215, and trading as high as $20,961. After consolidating in an increasingly tight range since early September, this is the first relief rally in many months.”

Source: Glassnode

Bitcoin gained 6.6% during intraday trades to reach $20.626 according to the latest data from CoinMarketCap.

Bitcoin is now near the lower end of the realized value, which is the average coin acquisition price. It would be a sign of significant strength if it were to break the $21,111 mark. 

Source: Glassnode

The redistribution and distribution of wealth continues

In the Bottom Discovery phase, decreasing investor profitability often triggers the redistribution coin wealth. It happens when weaker hands give in to financial distress. 

Glassnode used UTXO Realized Price Distribution(URPD) to show that the current bear market may need more consolidation and time. The amount of coins changing hands is lower than during the 2018-2019 bottom discovering phase when 22.7% was redistributed.

According to the market intelligence provider:

“Performing the same analysis in 2022, we can see that around 14.0% of supply has been redistributed since the price fell below the Realized Price in July, with a total of 20.1% of supply now having been acquired in this price range.”

Although Bitcoin is nearing the bottom, the bearish-to-bull transition is not complete due to a lack of convincing new demand. 

Blockchain.News reported recently that Cumberland, a cryptocurrency trading firm, highlighted the fact that Bitcoin volume is still massive considering that BTC derivatives in excess of $50 billion were being cleared on crypto-exchanges every day. 

Source: Shutterstock

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