After touching a high of $43,100 yesterday, Bitcoin has seen a marginal dip in its price during the past 24 hours. However, BTC bulls have managed to keep the price above $42,000. During the recent volatility across the BTC network, the number of new Bitcoin entities and entity-adjusted transactions has started recovering from the recent lows.
Despite weak network fundamentals, the price of BTC has showed resilience since the start of 2022. Uncertainties around Bitcoin regulation and geopolitical tensions between Russia and Ukraine have also increased pressure on BTC. However, the $40,000 price level acted as a strong support level.
“The 2017 bull market top was followed by a near-complete 'destruction' of the new transaction volume that pushed prices to the cycle all-time-high of $20k. Throughout 2018 and 2019, daily settlement volume languished at around $1.5B/day, a level first established in July 2017. Large size transactions (>$1M in value) represented between 10% and 30% of all volume at this time,” Glassnode noted in its report.
“In the 2021-22 bear market, however, total daily value settlement has continued to trend higher, as measured at the lows of both 50%+ draw-downs. Large size transactions also now represent a sustained 65% to 70% dominance,” the report added.
Crypto Liquidations
With a dip in crypto volatility, liquidations across the digital asset market have also dropped. According to the recent data published by Coinglass, almost $11 million worth of crypto trading positions have been liquidated in the last 4 hours, the number is significantly lower compared to the same period on 22 March. During the last 4 hours, nearly $1.2 million worth of short Bitcoin positions has been liquidated.
“Implied volatility priced into at-the-money options markets is also climbing in recent weeks. This is despite prices trading in a sideways range which usually lead to a compression in implied volatility,” Glassnode explained.
