- Glassnode’s risk assessment analysis suggests a high level of risk exists in the Bitcoin market.
- The platform identified the risk of increased selling pressure as investors see a growing incentive to take profits.
- Glassnode’s NUPL indicator suggests Bitcoin is in a state of Euphoria
According to Santiment , a cryptocurrency intelligence platform, transaction volume in Bitcoin is rising, but the number of wallets holding over zero Bitcoins is decreasing. Santiment’s deduction supports Glassnode’s risk assessment analysis, suggesting a high level of risk exists in the Bitcoin market.
In a post on X, Glassnode, a leading on-chain and financial metrics platform, used several indicators to explain the current state of the Bitcoin market. According to the analytics platform, Bitcoin has signaled significant risk levels for the past 12 days. The Market Value to Realized Value (MVRV) indicator is greater than 1, similar to the Mayer Multiple (MM) indicator.
With the Supply Profitability State indicator trading at 93.3%, Glassnode showed the Bitcoin market is in a high-risk situation. The indicator measures the proportion of coins with a cost-basis lower than the current spot price. It identifies the potential risk of increased selling pressure as investors see a growing incentive to take profits.
Using the Net Unrealized Profit/Loss (NUPL) indicator, Glassnode further revealed the extended risk in the Bitcoin market. According to the analytics firm, the market sentiment measuring indicator suggests Bitcoin is in the Euphoria phase, signaling a risky market. The firm showed the NUPL is above the +1 STD band, with a current value of 0.64.
With several more indicators, Glassnode repeatedly explained why the risk level is high in the Bitcoin market. Some of the additional indicators include the Realized Profit/Loss (RPLR), the Long-Term Holder MVRV (LTH-MVRV), and the Long-Term Holder Spending Binary Indicator (7D).
Each indicator listed by Glassnode independently showed that Bitcoin is in a high-risk phase, with the price set for a pullback. The flagship crypto traded for $68,479 at the time of writing, dropping from the recently achieved all-time high (ATH) of $73,794.
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