Bitcoin price ‘sideways boredom’ may last 18 months — New research

Bitcoin (BTC) deals with up to one-and-a-half years of “boredom” as the bull market gathers steam, a brand-new forecast says.In the latest edition of its weekly newsletter, “The Week On-Chain,” analytics firm Glassnode predicted an “strenuous” duration for BTC hodlers next.Glassnode: Bitcoin hodlers set for 12 months “progressive accumulation”Thanks to gaining 70% in Q1 this year but then struggling to hold its ground, Bitcoin is dividing viewpoint when it comes to future price action.With the 2024 block subsidy halving in sight, some believe that a dramatic uptick will identify the coming year, while others think that it will take longer– maybe up until 2025– for a new all-time high to hit.For Glassnode, there are signs that a classic pre-bull market phase is playing out, but long-lasting holders will still need substantial patience.Investigating the “life” of the BTC supply, which it describes as “the tendency of Bitcoin holders to spend or hold their coins,” researchers exposed mass build-up.”Bitcoin Hodler Net Position Change annotated chart (screenshot). Source: GlassnodeMagazine: Gary Genslers job at danger, BlackRocks very first area Bitcoin ETF and other news: Hodlers Digest, June 11– 17This post does not contain financial investment guidance or recommendations.

Bitcoin (BTC) deals with up to one-and-a-half years of “monotony” as the booming market gathers steam, a brand-new prediction says.In the most recent edition of its weekly newsletter, “The Week On-Chain,” analytics firm Glassnode predicted an “strenuous” duration for BTC hodlers next.Glassnode: Bitcoin hodlers set for 12 months “gradual build-up”Thanks to acquiring 70% in Q1 this year however then having a hard time to hold its ground, Bitcoin is dividing viewpoint when it concerns future cost action.With the 2024 block aid cutting in half in sight, some believe that a remarkable uptick will identify the coming year, while others think that it will take longer– maybe until 2025– for a brand-new all-time high to hit.For Glassnode, there are signs that a classic pre-bull market phase is playing out, however long-term holders will still need considerable patience.Investigating the “vitality” of the BTC supply, which it refers to as “the tendency of Bitcoin holders to invest or hold their coins,” scientists exposed mass build-up.”Currently, Liveliness remains in a multi-year macro downtrend, having peaked in May 2021 when bearishness first embeded in. We can see a similar structure has actually formed to the 2018-20 cycle, as coins gradually however definitely migrate into cold storage and are removed from the marketplace by the HODLer mate,” they discussed.”These HODLers are currently building up coins at a rate of around 42.2 K BTC/month, recommending that the rate insensitive class are absorbing a non-trivial part of the currently available supply. If we compare this behavior to previous cycles, we can see that this program of constant and gradual build-up began simply over 2-years back, and suggests that another 6 to 12-months might lead us.”Bitcoin Hodler Net Position Change annotated chart (screenshot). Source: GlassnodeThey added that reducing exchange balances likewise points to the supply ending up being progressively illiquid– out of reach in private freezer and not for sale.Bitcoin wealth transfer “undisturbed”As Cointelegraph reported, the more speculative end of the hodler base– so-called short-term holders– is also in focus currently.Related: Most fear in 3 months as $26.4 K becomes key– 5 things to know in Bitcoin this weekThese investors have actually hodled coins for a maximum of 155 days, and their aggregate cost basis– around $26,400– is on the radar as a short-timeframe assistance zone. Continuing, Glassnode noted that based on wallet entity size, not everybody is in build-up mode, with whales– the largest-volume accomplices– currently “net distributors.””Overall, the marketplace seems in a duration of quiet accumulation, which suggests an undercurrent of need, despite the regulatory headwinds of late,” it specified, describing recent United States regulative pressures affecting significant exchanges.Bitcoin supply absorption rates chart (screenshot). Source: GlassnodeFor a seismic trend shift to happen, however, scientists think that it will take another cutting in half to reoccur.”Across many steps of market energy, digital asset markets are displaying excitement in few of them. Volatility, volumes, and recognized value are all at multi-year lows, as liquidity and enjoyment pave the way to investor apathy,” they concluded. “However beneath the surface area, the timeless pattern of wealth transfer towards the cost insensitive HODLer cohort stays continuous. If previous cycles are any guide, it suggests that a duration of apathetic sideways monotony might well specify the roadway ahead, possibly lasting between 8 to 18-months in period.”Bitcoin pre-halving price efficiency comparison (screenshot). Source: GlassnodeMagazine: Gary Genslers job at danger, BlackRocks very first area Bitcoin ETF and other news: Hodlers Digest, June 11– 17This article does not consist of investment guidance or recommendations. Every financial investment and trading move involves threat, and readers must perform their own research study when making a choice.

Other Questions People Ask

What does the new research say about Bitcoin price ‘sideways boredom’ lasting 18 months?

The latest research from Glassnode suggests that Bitcoin (BTC) may experience a period of "sideways boredom" lasting between 8 to 18 months. This phase is characterized by a lack of significant price movement as the market prepares for a potential bull run. During this time, long-term holders, or hodlers, are expected to engage in gradual accumulation, indicating a shift in market dynamics.

How will Bitcoin hodlers be affected by the predicted 18-month sideways price action?

According to Glassnode, Bitcoin hodlers will face a challenging period of up to 18 months marked by "progressive accumulation." This means that while the price may not see dramatic increases, hodlers will continue to accumulate BTC at a steady rate. The research indicates that this accumulation phase is essential for setting the stage for future price surges as market conditions evolve. This directly relates to Bitcoin price ‘sideways boredom’ may last 18 months — New research in practical terms.

What factors contribute to the expectation of Bitcoin's sideways price movement for 18 months?

The expectation of Bitcoin's sideways price movement is influenced by several factors, including the upcoming 2024 block subsidy halving and current market sentiment. Glassnode notes that while some investors anticipate a significant price increase, others believe it may take until 2025 for new all-time highs. The combination of reduced exchange balances and a shift towards long-term holding behavior suggests that the market may remain relatively stagnant for an extended period.

What signs indicate that Bitcoin is in a pre-bull market phase despite sideways boredom?

Glassnode identifies several signs that suggest Bitcoin is in a classic pre-bull market phase, even amid the anticipated sideways boredom. These include the ongoing accumulation by long-term holders and decreasing liquidity in the market. The research highlights that while volatility and trading volumes are low, the underlying demand from hodlers remains strong, indicating potential future price movements.

How does the current Bitcoin market sentiment reflect on future price predictions?

The current Bitcoin market sentiment reflects a cautious optimism, as indicated by Glassnode's analysis of hodler behavior and market dynamics. While there is a prevailing sense of "boredom," the consistent accumulation by long-term holders suggests an underlying demand that could lead to significant price changes in the future. However, the research warns that this may not occur until after the next halving event, prolonging the period of sideways movement.