The second financial quarter of 2022 did not end very well for Bitcoin [BTC]. In what can be called “extreme market conditions”, the flagship crypto currency has been struggling on all fronts. Investors are left with low returns, while crypto institutions collapse like dominoes. However, there is also a positive side here.
Fresh from the wounds of witnessing its worst quarter in over a decade, Bitcoin continues to divide opinion. The king coin is currently trading below $20,000 after a failed comeback. However, some on-chain metrics suggest a possible revival of the cryptocurrency. Will Bitcoin put these torrid months behind it and fulfill the ‘maxi’ prophecy now?
Let the data speak for itself
The movement of the whales has always been an important indicator of Bitcoin price action. Recently, during the Terra crisis and 3AC, the whales have been accumulating BTC. Also, according to data from Glassnode, whales have added more than 140,000 BTC per month recently.
Within the extremely challenging #bitcoin market conditions of 2022, there are three cohorts of entities with very interesting dynamics:
A thread exploring these entities 🧵1/4 pic.twitter.com/rxYcNxausS
– glass node (@glassnode) June 29, 2022
The update claims that the whales now hold 8.69 million BTC, which is more than 45.6% of the total supply. Shrimp, on the other hand, has 1.12 million BTC after recently increasing their purchases. According to basic economic law, an increase in demand, in case of limited supply, will lead to an increase in prices.
With that being said, here is a bullish signal posted in a recent Glassnode tweet. The tweet claims that Miners to Exchange Flow (7d MA) hit a five-year low of 2,046 on July 2. Such a low was last observed on February 24, 2022. Historically, this metric shows the confidence of miners even in these times of economic crisis.
Another possible bullish indicator was aware by Santiment on July 2. According to the tweet, the MVRV of short-, medium-, and long-term headlines signals a “pain” threshold for investors.
This point historically “foreshadows(n) the approaching price change”. However, the tweet adds that the timing of the change remains uncertain.
But there is a big concern in the Bitcoin network as aforementioned by Glassnode. Bitcoin’s realized cap hit an eight-month low of $425,757,220,277.8 on July 2. This comes at a time when many around the world are waiting (hoping, so to speak) for Bitcoin to change.
Now, the question is: Where does Bitcoin go from here? With institutions falling one after another, growing uncertainties still hang over the market. These metrics should provide restless investors with some hope for now. But will investors be patient enough to witness the long-awaited turnaround?