Many indicators show that the market has entered the “deepest phase of the bear cycle”. This is stated in Glassnode’s analytics report.

According to the observations of the researchers, the main indicators were broken. Even long-term cryptocurrency holders are now experiencing significant losses.

The market is significantly affected by macroeconomic factors:

Against this background, Bitcoin has shown 10 red candles in the past 11 weeks.

The chart above shows that the price is trying to consolidate. MA 200.

“Although many macro indicators continue to show that it is oversold, Bitcoin is still associated with traditional markets. Prices are falling accordingly,” Glassnode analysts said.

Below you can see that the MVRV Z-Score indicator has reached the “green zone”, which indicates a favorable period for accumulating digital gold in the long run.

Comparable lows of the indicator were last observed at the beginning of 2018-2019 and in March 2020. The cost of bitcoin then quickly plummeted to extreme values.

According to the observations of Glassnode experts, such favorable periods for hodlers last from 8 to 24 months, until the price of the first cryptocurrency reaches the “bottom”.

There is a decline in the bitcoin accumulation rate among long-term investors. Its reserves increase by 15,000-20,000 BTC every month. At the beginning of May, the speed was 64% higher than the current one.

“The accumulation trend of recent weeks is driven by very large (>10,000 BTC) and relatively small (<1 BTC) players,” Glassnode said.

Between “crabs” and “sharks” (from 1 BTC to 100 BTC), there is a shift from neutral behavior to distribution desire, in the background of the current collapse.

The evolution of the situation will largely depend on whale activity and price support, according to the researchers.

ForkLog previously reported a drop in market value to January 2021 levels.