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Bitcoin Markets in ‘Transitional Phase’ Following Psychological Price Rejection

2 mins
7 March 2023, 04:12 GMT+0000
Updated by Kyle Baird
7 March 2023, 04:12 GMT+0000
In Brief
  • There have been a couple of psychological price rejections at $23,000.
  • Markets are in a late bear transitional phase according to Glassnode.
  • BTC has traded sideways for four days.
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Bitcoin markets have been in retreat since mid-February and recent psychological price rejections. However, they remain in a transitional phase according to on-chain analysis.

In its “Week On-chain” report on March 6, blockchain analytics provider Glassnode noted that Bitcoin prices had been rejected from a series of psychological on-chain levels.

It added that the rejection was related to “older hands from the 2021-22 cycle,” and the whale cohort. Additionally, last month’s BTC pump to $25,000 also saw rejection at least four times.

BTC has been range-bound at current levels with very little volume since its Friday dump to a weekly low of $22,200.

Bitcoin Markets Still Weak

The report also noted that the $23,500 price level served as a psychological barrier. It would result in a return to profit for pretty much all Bitcoin holders.

“Price breaking above $23,500 would reflect a rally above the Old Supply Realized Price, putting the average holder in all cohorts back into profit.”

The Net Unrealized Profit/Loss metric (NUPL) can be used to indicate market transition phases. Average BTC holders are now holding a net unrealized profit of around 15% of the market cap.

Glassnode concluded that current market conditions resemble those at the end of a bear market.

“The current state of the market can be reasonably described as resembling a Transitional Phase, typically occurring in the later stages of a bear market.”

Additionally, transfer momentum volume has been increasing, which is a sign of growing adoption and the inflow of new capital to the market.

Transfer volume has been growing since January but remains below the yearly average. A break above the 356-day moving average by the 30-day would signal the return of “strong capital tides.” However, there is still a fair way to go before this happens again, according to the chart.

BTC transfer volume momentum - Glassnode
BTC Transfer Volume Momentum – Glassnode

BTC Price Outlook  

The Bitcoin price has remained mostly flat since March 3, when it slumped more than 5% in an hour. There have been a couple of breaks above $22,500, but they were quickly rejected.

BTC is currently trading up half a percent on the day at $22,525 at the time of press.

BTC/USD 7 days - BeInCrypto
BTC/USD 7 days – BeInCrypto

The asset is currently facing resistance again and needs to break through this to prevent a fall to low $22,000 levels. It has currently shed 9.2% over the past fortnight and remains in a short-term weekly downtrend.


In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions.