Despite a marginal price recovery, Asian markets are not ready to buy Bitcoin and other digital currencies. In fact, most of the markets in the Asian region have dominated the selling of Bitcoin in the past few months.
In its latest weekly on-chain analysis report, crypto analytics platform Glassnode mentioned that a heavy sell-side dominance was observed in Asian markets during the current market correction. In contrast, the US and EU markets dominated the buying pressure.
According to the report, the United States led Bitcoin buying in July and August last year. At present, Europe is providing the largest bid support to BTC.
“Current buy-side demand appears to be dominated by US and EU markets, with the majority of sell-side sources during Asian trading hours. Bitcoin network utilization and on-chain activity remain firmly within the bear market territory, albeit is recovering. A sustained upwards impulse in network activity would likely be constructive, whilst deterioration likely favors the bears,” Glassnode added.
New Bitcoin Entities
Growth in new BTC entities is important for the development of the Bitcoin network. Currently, the network is adding new on-chain entities at an average rate of 110k per day. The number is pretty much similar to the peak of a mini bull run in 2019. Furthermore, the volume of Bitcoin transactions has increased recently but it is still lower compared to 2019.
“A similar trend is observable in transaction counts, although the current rate of 215k Tx/day is lower than what was observed throughout 2019. For metrics like active addresses, new on-chain entities and transaction counts, an accelerated growth rate higher would be a constructive signal and likely support a healthy recovery in prices. Conversely, a deterioration in network utilization would be a more bearish observation, and one to watch out for as a sign of demand exhaustion,” the report explained.
