Glassnode: Bitcoin is Approaching the Final Phase of its Correction, but the Bottom Has Not Yet Been Confirmed
Glassnode, a leading on-chain data analytics company in the cryptocurrency market, made noteworthy assessments regarding Bitcoin’s current market cycle in its latest weekly report. According to the company, while many technical and on-chain indicators point to the final stages of the Bitcoin correction, it is still too early to definitively say that the market has bottomed out.
Glassnode’s analysis noted that the recent price declines have led the market to exhibit characteristics typical of late-stage corrections. It highlighted that investors who bought during the recent rally are facing significant unrealized losses, and also drew attention to the weakening demand from institutional investors.
According to the report, Bitcoin’s decline to the $60,000 level significantly cleared the excessive speculative demand in the market. Large-scale liquidations, particularly in leveraged positions, were considered a key factor in reducing the market’s excessive risk. However, Glassnode noted that strong spot buying, necessary for the market to form a healthy bottom after these liquidations, has not yet emerged.
Analysts point out that investor risk appetite remains low. The decrease in institutional investor participation and the slowdown in the pace of Bitcoin purchases by companies holding Bitcoin as a balance sheet asset are among the key indicators supporting this view. The weakening of institutional demand, one of the most important factors supporting Bitcoin’s price in recent years, is emerging as a factor that could delay the market’s recovery process.
Glassnode also stated that various valuation models indicate Bitcoin has entered one of its historically low-value zones. However, the company emphasized that the strong demand surge and intense spot buying seen in past cycles have not yet been observed.
According to experts, simply falling to cheap prices is not enough to confirm that the market has truly bottomed out. It also requires a renewed increase in investor confidence, the start of strong buying in spot markets, and the return of institutional capital.
This is not investment advice.
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