Bitcoin Risks Turning Bearish Due to Declining Market Health, Says Glassnode

Bitcoin (BTC) risks sliding back into bearish territory should onchain activity and overall market health continue to decline, warns analytics firm Glassnode.

The latest market update from Glassnode shows that the GNI index, which measures the overall state of the Bitcoin network, dropped 18% or 13 points week-on-week, to a value of 60 points. Simultaneously, the price of BTC was falling below the psychological $9,000 level, to around $8,700.

The index considers metrics such as network health, sentiment, and liquidity to determine the strength of bitcoin’s fundamentals. According to the report, all three measurements fell by between 8 points to 20 points, driving the GNI lower.

The long-term health of the BTC network remains “relatively high,” it said, but declines in the overall network activity, exchange in-flows, and onchain transaction volumes is contributing to the decrease in the price of bitcoin.

“This has been driven by an overall decrease in economic activity in…