Glassnode Analysts Warn of Approaching Bitcoin Price Peak

According to experts, demand for digital gold is weakening.

Digital gold continues to adhere to its historical four-year cycle associated with halvings, according to analysts at Glassnode. 

“From a cyclical perspective, the price of Bitcoin follows patterns we have seen in the past,” they noted. 

Since August 14, when the leading cryptocurrency reached a new price record above $124,000, long-term investors have been actively taking profits. The volume of sales is comparable to peak levels of all previous cycles, except for the 2016-2017 period.

According to experts, demand for Bitcoin is weakening, as indicated by outflows from ETFs. Over the past four trading days, investment products have lost $975 million. 

After reaching a historic high of $124,128, the price of the leading cryptocurrency fell by more than 8% to $113,403.

The decline in demand has prompted traders to make risky bets on volatility, Glassnode emphasized. 

“The decrease in interest coincided with a surge in speculative positions: the open interest volume for major altcoins briefly reached a record $60 billion, before correcting by $2.5 billion,” the report states. 

Analysts believe all this suggests the cycle is reaching its late stage.

If Bitcoin continues to follow its typical trajectory, the peak could occur in October. In the past, the cryptocurrency reached peak price levels two to three months after the “current starting point, measured from the lows.” 

However, analysts added that each cycle is unique, and there are no guarantees of following the same time patterns. 

“Does the traditional four-year cycle persist, or are we witnessing its transformation? The answers to these questions will become clear in the coming months,” they concluded. 

Back on July 25, CryptoQuant CEO Ki Young Ju stated that the Bitcoin cycle theory no longer holds. He noted that the reason was the more active participation of institutional players. 

Later, Bitwise’s Chief Investment Officer Matt Hougan expressed a similar view. According to him, the forces that shaped the four-year cycles have weakened under new conditions.