The worst of the Bitcoin (BTC) capitulation could be over, according to the crypto analytics firm Glassnode.
In a new analysis, Glassnode examines the Market Realized Gradient Oscillator (MGRO) 14-day, 28-day and 140-day time periods, with the latter period indicating Bitcoin has already been in a bear market for many months, according to the analytics firm.
“The 140-day MRGO has seen persistently lower peaks since March 2021 and has not recorded a positive value in 2022. This highlights a macro bearish market dynamic has likely been in effect for the last 15 months.
The current extended negative value regime is indicative of the persistently negative price performance in 2022, and remains in the favor of the bears at this stage.
The underlying trend continues to slowly grind higher indicating a potential longer term recovery is in effect, however, suggests additional duration and recovery time may be required.”
MGRO compares market momentum to capital inflows based on the rate of change between market price and realized price.
Realized price is calculated by taking Bitcoin’s realized market capitalization, the value of all BTC at the price they were bought, not the current price, and dividing it by the current BTC supply.
A positive MGRO value indicates bullish momentum, while a negative MGRO value indicates bearish momentum.
Bitcoin is trading for $21,167 at time of writing. The top-ranked crypto asset by market cap is up 0.29% in the past 24 hours.
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