Glassnode Warning: Bitcoin Sees 'Buyer Absence,' Breaks Below $58,500 and Tests $52,800

BlockBeats News, August 18th, On-chain data analytics firm Glassnode indicated that the Bitcoin market is currently in a state of “highly compressed” with selling pressure weakening, but buyers have not significantly entered the market. Currently, BTC is mainly oscillating between $63,000 and $68,700, and market trading activity has dropped to the lowest level since 2019.

Glassnode data shows that the 30-day “Seller Exhaustion Constant” has dropped to the lowest level since 2013, but the confirmation of a historical market bottom signal is yet to be seen. If BTC fails to hold $58,500, the next support level may drop to $52,800.

Cryptocurrency analyst CryptoBusy pointed out that the current level of seller exhaustion is approaching that of the previous bear market bottom, but deeper sell-offs have occurred in historical cycles. Therefore, Bitcoin may still need to further release selling pressure to complete the market clearing.

Michael Terpin, the founder of Transform Group, predicted that Bitcoin may bottom out around $57,000 in October and believed that a complete exhaustion of sellers is a crucial signal for the end of a bear market.

However, the market has not formed a unanimous bottom judgment. Some analysts believe that currently only 2 of Glassnode’s 10 surrender indicators have been triggered, suggesting that BTC's potential bottom may be between $49,000 and $53,000. Analysts also pointed out that it is still not enough to confirm that the market has entered a phase of sustained accumulation until ETF fund flows and spot trading volumes show significant recovery.

Glassnode also warned that leveraged traders have bet on a market recovery, but current on-chain and market data have not provided sufficient support for this expectation.