On-chain analysis is increasingly pointing towards the establishment of a bear market bottom which denotes an accumulation phase for Bitcoin whales.
In its weekly on-chain analysis report on Oct. 10, Glassnode stated that Bitcoin has “remained remarkably stable” in recent weeks when compared to traditional asset markets such as forex, volatile equity, and credit.
Against a backdrop of central bank rate hikes, rampaging inflation, and a strong US dollar, Bitcoin has been uncharacteristically low in volatility, it added.
The report compared the current market conditions to previous bear market lows to conclude that “on-chain metrics, market structure, and investor behavior patterns are dotting of the i’s, and crossing the t’s for a textbook bear market floor.”
Bear market bottoms are usually times of slow and steady accumulation by institutions, experienced investors, and whales.
The report compared two charts, one in the bear market between September 2018 and April 2019 and the current one that started in April 2022. They were uncannily similar, each with a capitulation event and bear market rallies.