Number Of Active Entities Remain In Bear Market Channel

BlockchainNumber Of Active Entities Remain In Bear Market Channel


Data shows the number of active Bitcoin entities has been steadily going up, but the growth pattern still remains in the bear market channel.

Number Of Active Bitcoin Entities Continues To Remain In Bear Market Channel

As per the latest weekly report from Glassnode, the number of active BTC entities has observed a persistent user growth recently.

The “number of active entities” is an indicator that tells us about the number of daily active users on the Bitcoin network.

An entity here refers to a collection of addresses held by a single investor, so the number of entities isn’t the same as the total number of addresses on the network.

When the value of this indicator rises, it means more holders are making trades right now. A sharp growth can suggest a large number of new investors are ushering into the Bitcoin market.

On the other hand, decreasing values of the metric implies interest around the crypto is diminishing as investors go dormant.

Related Reading | On-chain Data Suggests Bitcoin Miners Were Behind The Selloff

Now, here is a chart that shows the trend in the number of active Bitcoin entities over the past several years:

Looks like the metric has observed some growth recently | Source: Glassnode's The Week Onchain - Week 15, 2022

As you can see in the above graph, the number of active Bitcoin entities has been steadily going up in recent weeks.

However, the value of the metric is still within a range that the report refers to as the “bear market channel.” As the name suggests, the indicator is usually inside this range during bearish periods where a persistent user growth is observed, but nothing too explosive.

During the bull market hype, on the contrary, the number of active entities usually shows a very rapid rise. But near the peak, the indicator also crashes down sharply.

Related Reading | Price Of Bitcoin Retreats Under $42,000 As Enthusiasm From Miami Event Fizzles

Recently, the trend has been that of a sharp growth in the Bitcoin active entities, but as pointed out earlier, the current value is still at the upper end of the bear market channel

Nonetheless, the report notes that any expansion here would mean the indicator will finally escape this range, something that could prove to be constructive for the price of the coin.

BTC Price

At the time of writing, Bitcoin’s price floats around $40.4k, down 14% in the past week. Over the last month, the crypto has gained 3% in value.

The below chart shows the trend in the price of the coin over the past five days.

Bitcoin Price Chart

Bitcoin seems to have plunged down over the last couple of days | Source: BTCUSD on TradingView
Featured image from Unsplash.com, charts from TradingView.com, Glassnode.com



Learn more

Latest news

Cardano Creator Challenges IOTA Co-Founder Dominik Schiener to Debate: Details

Cardano founder Charles Hoskinson has urged the IOTA co-founder and chairman of the IOTA Foundation, Dominik Schiener, to a debate....

LUNC Trading Volume Falls Double-Digits, Is Binance Burning Hype Over?

Gamza Khanzadaev LUNC price and trading volume fall days after Binance burning announcement Luna Classic's (LUNC) trading volume is down...

LINK Reaches $8.35 Peak, Traders Embrace It Hard: Details

Yuri Molchan Chainlink has made it back to top 10 list of assets by trading volume on reaching price...

Elon Musk texts reveal Jack Dorsey’s long push to get mogul on Twitter board

Newly released texts between Elon Musk and Jack Dorsey show how the Twitter founder had pushed since at...

First Mover Asia: IOTA’s Shimmer Joins the Race to Become the Next Big Blockchain; Bitcoin Seesaws Before Holding Near $19.5K

The unveiling of a new blockchain platform comes amid a flurry of blockchain startups, each promising to be...

Cardano DEX Reports Vasil’s Impact on Fees and Transaction Size: Details

On Sept. 27, Cardano builder IOG announced that the new Vasil capabilities (including node and CLI support for reference...

Must read

Cardano Creator Challenges IOTA Co-Founder Dominik Schiener to Debate: Details

Cardano founder Charles Hoskinson has urged the IOTA co-founder...

LUNC Trading Volume Falls Double-Digits, Is Binance Burning Hype Over?

Gamza Khanzadaev LUNC price and trading volume fall days...

LINK Reaches $8.35 Peak, Traders Embrace It Hard: Details

Yuri Molchan Chainlink has made it back to top...

You might also likeRELATED
Recommended to you