Glassnode: Bitcoin correction does not mean the beginning of a bearish cycle

In mid-April, the Bitcoin rate rose to a historically high value of $64,895, after which theprolonged correction.For more than a month now, the first cryptocurrency has been showing a decline in quotes, and on May 19, a local minimum was recorded at $39,251. As a result, the drop from peak values ​​was 40%.

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Is this the start of a bearish cycle? Glassnode analysts believe not necessarily.

“This correction is the largest in the current bullish cycle. However, it is comparable to the previous five major pullbacks that were observed during the upward movement in 2017 ", experts note.

Glassnode points out that the current correction is due to panic among new investors who are selling their assets due to Elon Musk’s comments.

Recall that Musk said last week thatTesla will no longer accept Bitcoin due to the environmental hazards of mining. And on May 16, he hinted that his company had sold all the BTC in its possession, although he later denied this statement.

"This situation caused confusion in the markets, although for many bitcoin hodlers it was just another working day."Glassnode says.

Glassnode as confirmation of his theoryprovide activity data on the Bitcoin blockchain. According to them, the number of addresses with a non-zero balance decreased by 2.8%. This indicates panic selling.

"1.1 million addresses spent their coins during the current correction", Experts say.

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At the same time, the short-term coefficientSpending Outputs Profitably (SOPR) fell below 1. This signals that BTC holders were moving the cryptocurrency at a loss to themselves relative to the entry price.

In other words, investors who bought bitcoin relatively recently started selling at a loss when the price fell to $ 42,000. At the same time, the long-term SOPR is at levels above 4.

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“The structure of the bull market remains unchanged.Historically, in the bitcoin bull market, corrections of 30-35% are quite normal. Weak and new investors sell, long-term cryptocurrency holders continue to hold "- said the representative of the company Delphi Digital Jeremy Ong.

Where is it more profitable to buy and sell bitcoin? TOP-5 exchanges

For a safe and convenient purchase of cryptocurrencies with a minimum commission, we have prepared a rating of the most reliable and popular cryptocurrency exchanges that support deposits and withdrawals of funds inrubles, hryvnias, dollars and euros.

The reliability of the site is primarily determinedtrading volume and number of users. By all key metrics, the largest cryptocurrency exchange in the world is Binance. Binance is also the most popular crypto exchange in Russia and the CIS, since it has the largest cash turnover and supports transfers in rubles from bank cardsVisa / MasterCardand payment systemsQIWI, Advcash, Payeer.

Especially for beginners, we have prepared a detailed guide: How to buy bitcoin on a crypto exchange for rubles?

Rating of cryptocurrency exchanges:

#	Exchange:	Website:	Rating:
1	Binance (Editor's Choice)	https://binance.com	9.7
2	Bybit	https://bybit.com	7.5
3	OKEx	https://okex.com	7.1
4	Exmo	https://exmo.me	6.9
5	Huobi	https://huobi.com	6.5

The criteria by which the rating is set in our rating of crypto-exchanges:

• Work reliability&#8212; stability of access to all functions of the platform, including uninterrupted trading, deposits and withdrawals of funds, as well as the duration of the market and daily trading volume.
• Commissions– the amount of commission for trading operations within the platform and withdrawal of assets.
• Feedback and support– we analyze user reviews and the quality of technical support.
• Convenience of the interface– we evaluate the functionality and intuitiveness of the interface, possible errors and failures when working with the exchange.
• Platform Features– availability of additional features &#8212; futures, options, staking, etc.
• final grade– the average number of points for all indicators determines the place in the ranking.

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