The situation in the Bitcoin and crypto market continues to follow a downward trend. The prices of most crypto-assets have maintained a move south in recent weeks. The collapse of FTX continues to spin the wheels negatively as the contagion spreads.
Glassnode, a blockchain analytics company, is reporting more doubts about the crypto market. On November 21, the company closed its Week on-chain report and disclosed the impact of the market crisis on Bitcoin holders.
In his report, the company checked the overall increase in average inflow volume on many exchanges and found that many whales are losing. The report also shows that average deposits on top exchanges increase in dollars as Bitcoin reaches its lowest level/bottom.
The company noted that the trend has been around since May this year. This is similar to the 2018/19 bear market. Glassnode also stated that the report points to increased dominance over exchange deposits from whales, trading firms and institutions.
The emergence of an old pattern
The analysis of the previous bear market mirrors the events. BTC prices fell 84% against their ATH. But within a year, the token bottomed out when it went from $20,000 to $3,200 in November 2018.
The primary crypto asset follows a similar pattern in its timing. BTC is down 77.3% from its ATH of $69,000 in November 2021 to a new cycle low of $15,665 in November 2022.
There is still a different view on the trend for Bitcoin than analysts who believe in more time. They relied on the asset several months after the 2018 bear market before witnessing a significant bullish rise. In 2018, it took Bitcoin five weeks to bottom after the capitulation began.
$BTC Did you know it took us 5 weeks to finally bottom out when we started to capitulate in 2018?
Then it took 4 months of BORING PA before we saw the first God candle.
We barely started week 2 today.
This is a marathon, not a sprint. Make yourself comfortable, it will take a while. pic.twitter.com/H9Yu8D2fUY
— Bleeding Crypto (@Bleeding_Crypto) November 21, 2022
In addition, Glassnode reported spot prices hover around $16,000, making it the first time since March 2020 that the whales have suffered an unrealized loss. A whale represents a wallet with more than 1,000 Bitcoins.
As of last week, the market witnessed the fourth largest increase in realized losses with a daily value of -$1.45 billion.
Bitcoin hits a new low in 2022
Recently, Bitcoin prices have gone south with little or no restraint. As a result, the token has finally reached its lowest level for 2022 in the current market cycle.
Bitcoin fell to a low of $15,665 but has managed to climb above $16,000, indicating an upside.
Featured image from Pixabay, chart from TradingView.com