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Bitcoin and Ethereum On-Chain Analysis: Consistency Persists with Short-Term Bear Threat – Coingape


The number of Bitcoin addresses with a minimum balance of 1 has been on a rise despite the bearish sentiments in crypto markets.

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While the derivatives market was predominantly bearish after the panic drop due to coronavirus on 12-13th May, the increase in BTC holdings projects positive on-chain fundamentals. Research analyst, Ria Bhutoria, currently with Fidelity Digital Assets tweeted,

The number of addresses with at least 1 BTC has consistently been establishing new highs every 1-2 days since March 22nd

 

 

bitcoin address more than 1
Number of Addresses with more than 1 BTC (Source: Twitter)

Glassnode Studio which published the metrics notes,

Number of Addresses holding 1+ coins just reached an ATH of 802,715.000 Previous ATH of 802,567.000 was observed on 08 April 2020

Moreover, the SOPR (Spent Output Profit Ratio) is currently, at a critical juncture around 1. The indicator was introduced by Renato Shirakashi who notes in the blog post,

First of all, SOPR appears to oscillate around the number 1. Secondly, during a bull market values of SOPR below 1 are rejected, while during a bear market values of SOPR above 1 are rejected.

bitcoin sopr ratio
Bitcoin SOPR (Source: Glassnode)

 

The drop which began in March has seen rejection from the number 1, twice and is now trading around 1. Rejection from this level could will continue to keep the bearish sentiments alive.

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Ethereum [ETH]

Moreover, the on-chain metrics for Ethereum has been consistent despite the drop in prices as well. The number of transactions is above the bear market during the latter half of 2019.

ethereum transactions chart
Ethereum [ETH] Daily Transactions Chart (Source)

The number of unique addresses is also rising linearly. However, the number of addresses with more than 1 ETH witnessed a huge drop at the beginning of this year.

READ  Facebook, Binance, Chinese Yuan Combine to Boost Bitcoin above $9000 - Yahoo Finance

Moreover, the current risk-off environment as the economy is heading into a recession builds a strong case of cryptocurrenices. However, the risk associated with the investment is equally high.

eth address more than 1
Number of Addresses with more than 1 ETH (Source

Nevertheless, the number of ETH addresses with a balance of more than 10 has been stable, projecting a healthy long term view.

How do you think the price will be affected in the short-term? Please share your views with us. 

 

Summary

Bitcoin and Ethereum On-Chain Analysis: Consistency Persists with Short-Term Bear Threat

Article Name

Bitcoin and Ethereum On-Chain Analysis: Consistency Persists with Short-Term Bear Threat

Description

The number of Bitcoin addresses with a minimum balance of 1 has been on a rise despite the bearish sentiments in crypto markets.

Author

Nivesh Rustgi

Publisher Name

CoinGape

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Coingape is committed to following the highest standards of journalism, and therefore, it abides by a strict editorial policy. While CoinGape takes all the measures to ensure that the facts presented in its news articles are accurate.

Disclaimer
The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.



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