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The situation in the Bitcoin and crypto market has continued to follow a downward trend. Prices of most crypto assets are maintaining a southward movement over the past weeks. The collapse of FTX is still spinning the wheels negatively as the contagion spreads.
Glassnode, a blockchain analytics company, reports more doubts about the crypto market. On November 21, the firm concluded its ‘Week on-chain’ report and disclosed the impact of the market crisis on Bitcoin holders.
In its report, the firm checked the total increase in the Mean Inflow Volume to many exchanges and discovered that many whales are losing. Its report also shows that the average deposits on top exchanges increase in dollars as Bitcoin reaches its lowest levels/bottom.
The firm noted that the trend has been existing since May this year. This resembles the bear market of 2018/19. Also, Glassnode stated that the report indicates more considerable dominance on exchange deposits from whales, trading firms, and institutions.
The Rise Of An Old Pattern
The analysis of the previous bear market shows a mirroring of the events. The prices of BTC went down by 84% from their ATH. But within a year, the token bottomed out as it moved from $20,000 to $3,200 in November 2018.
The primary crypto asset follows a similar pattern in its timing. BTC has dipped by 77.3% from its ATH of $69K in Nov 2021 to a new cycle low of $15,665 in November 2022.
There’s still a different opinion on the trend for Bitcoin from analysts who believe in more time left. They relied on the asset several months after the 2018 bear market before witnessing a considerable bullish rise. In 2018, Bitcoin took five weeks before hitting bottom after the start of the capitulation.
$BTC Did you know that it took 5 weeks to finally hit the bottom once we started to capitulate in 2018?
Then it took 4 month of BORING PA before we saw the first God candle.
We barely started week 2 today.
This is a marathon, not a sprint. Get comfortable, it’ll be a while. pic.twitter.com/H9Yu8D2fUY
— Bleeding Crypto (@Bleeding_Crypto) November 21, 2022
Additionally, Glassnode reported the spot prices hovering around $16K, making it the first time since March 2020 that the whales should experience unrealized loss. A whale represents a wallet holding 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 2022 Low
Recently, the prices of Bitcoin have been going south with little or no restriction. As a result, the token has finally hit its lowest levels for 2022 in the present market cycle.
Bitcoin dropped to a bottom of $15,665, but it has managed to surge above $16,000, indicating an increase.
Featured image from Pixabay, chart from TradingView.com
