Bitcoin is trying to avoid losing momentum⚡

Bitcoin is trying to stay near $17,000 despite the deteriorating sentiment in stock indices. Analyst firm Glassnode reports that the top cryptocurrency has reached several significant on-chain levels:The average realized loss is at an all-time high of 0.60, which indicates an unprecedented progressive sell-off in the cryptocurrency market. Historically, these levels have proven to be opportunities for accumulation and heralded an imminent rally for cryptocurrency bulls. The level of losses realized by the market since 2011 is 14 times the level of gains achieved. We also see a preserved “4-year periodicity” compared to previous “crypto winters” for 2011, 2015, and 2018. Source: GlassnodeThe graph displays two on-chain metrics to better represent the network cost base, which was violated in previous bear markets. Balanced Price (Balanced Price, blue band) is an empirical attempt to capture the “fair” valuation of Bitcoin by measuring the difference between the value investors pay for it and the liquidated value of Bitcoin (converted price). The delta price (delta price, purple band) is the difference between the realized capitalization and the capitalization of bitcoin divided by the circulating supply; The moving average indicates the total lifetime of Bitcoin. In none of the previous kisses has Bitcoin price fallen below the “delta price” (purple). Only for about 136 days out of the last 4,518 BTC, there was a period when we could see the price “touching” the equilibrium price. Currently, we see both lines between $15,500 and $12,000. Bitcoin price briefly found itself near equilibrium after the FTX crash, but the bulls quickly responded by pushing the stock higher. Throughout the history of BTC, the equilibrium price has proven to be the maximum support level for Bitcoin, below which there have been no dips. Source: GlassnodeBitcoin chart, M30 interval.The major cryptocurrency managed to hold the $17,000 level despite yesterday’s dynamic sell-off, during which supply quickly put the bulls on the defensive and prevented them from reaching the $17,500 level. We also see that Bitcoin is still correlated with the NASDAQ (yellow chart). Yesterday’s declines in indices translated into sentiment in the cryptocurrency industry. As a result, Bitcoin once again fell below the 200-MA (red line), and the next closest support is the $16,800 levels, where the Fibonacci 38.2 cancellation of the bullish wave was found. It started at the end of November. Source: xStation5

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