As Bitcoin (BTC) has been trading above the psychological price of $20K, Glassnode has released its weekly on-chain report titled “Hammering Out The Bottom”, which looks at the stakes and risks that may come along the way. in front.

The market insight provider stated:

“Bitcoin has risen back above the $20,000 level this week, making a low of $19,215 and trading as high as $20,961. After consolidating in an increasingly tight range since early September, this is the first relief rally in many months.”

Source: Glassnode

Bitcoin rose 6.6% in the past seven days to hit $20,626 during intraday trading, according to CoinMarketCap.

Since the realized price is the average purchase price per coin, Bitcoin is currently nearing the bottom of the realized price set at $21,111. A break above would signify notable strength.

Source: Glassnode

The redistribution of wealth is still happening

During the bottom discovery phase, declining investor returns typically trigger the redistribution of coin wealth as weaker hands capitulate in the face of severe financial pain.

Using the UTXO Realized Price Distribution (URPD) indicator, Glassnode noted that further consolidation and duration may still be required in the current bear market because coins changing hands are lower than the lower discovery phase of 2018-2019, where redistributed 22.7% of the total supply.

The market insight provider noted:

“Performing the same analysis in 2022, we can see that around 14.0% of supply has been reallocated since the price fell below the realized price in July, with a total of 20.1% of supply purchased now. in this price range.

Although Bitcoin is preparing to break out of the bottom, the transition from bear to bull has not fully formed due to the lack of a compelling influx of new demand.

Meanwhile, crypto trading firm Cumberland recently highlighted that Bitcoin volume remained absolutely massive as roughly $50 billion worth of BTC derivatives were being settled daily on crypto exchanges, Blockchain.News reported.

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