The Bitcoin market is continuing to experience a correction period since its high of just below $31,000 in mid-April 2021. On-chain analytics firm Glassnode has provided insight into how far this market correction could go, with data suggesting that a total correction to around $24,400 could be possible.

Glassnode ran analysis on the concept of 'Old/Young' wealth redistribution through up-cycles, gauging potential demand in the market. Its data provides insight into the impact of new investors and their realized and unrealized profit performance. According to the report, the continued selling pressure from new investors was a ‘key driving force’ in setting the resistance at $30,000. Now, if the present market correction continues, that psychological level of $24.4k could be reached.

The blockchain analytics firm classified 'Young supply' as coins held for less than six months, and 'Old supply' for those held for longer. The monthly net position change of young supply showed that selling pressure had stabilized to 250,000 BTC per month. This data shows parallels to the 2019 uptrend that saw a significant 'equilibrium period' before the 2021 bull run. This, in turn, implies that sideways trading could trend for a while following the ongoing market corrections.

In addition, Glassnode looked into the amount of USD-denominated wealth changing hands, noting that while the supply has increased compared to previous bull-market thresholds, it is still largely being held by ‘longer-term, higher conviction holders'.

When taking into account the MVRV (market-value-to-realized- value) ratio which compares market capitalization with realized capitalization between the spot price and the on-chain cost basis, the analystic firm has suggested that a return to the break-even value of 1 would lead BTC to bear a correction to $24,400.

At the time of writing, the Bitcoin price has dropped 2%, staying just below $28,000, with the immediate level of support coming from around $27,400 if this bearish trend continues. The on-chain metrics being studied suggest that the market correction period currently in place is not over yet. Though Bitcoin has seen some impressive corrections in the past, it is important for investors to pay attention to key support levels so as to not lose out on potential profit.



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