On-chain metrics point to early stage bear market, but Bitcoin HODLers seem unfazed

ambcrypto.com:

Bitcoin, the largest cryptocurrency recently gathered some strength to push outside the resistance zone. At press time, BTC surged more than 4% to reach the $37.7k mark. This might sound decent however, the king coin suffered major blow from its previous ATH, $64k last year. Indicators still signal at a bearish trend concerning BTC.

Fear and Greed index, at the time of writing stood at 23, signalling ‘Extreme fear’. According to famed crypto trader/ analyst, Rekt Capital‘s poll on Twitter, more than 50% supported the aforementioned narrative.

— Rekt Capital (@rektcapital) January 22, 2022

In our latest analysis we seek to define whether #Bitcoin has entered a prolonged bear, using investor psychology, behaviour, and network profitability.https://t.co/4N1FKeHZHM

— glassnode (@glassnode) January 24, 2022

Glassnode, a leading on-chain metric analysis platform published their latest “The Week On-Chain” newsletter to highlight this possible bearish trend.

It established the “likelihood that a prolonged bear market is in play” by “using historical investor behavior, and profitability patterns” as guide. One thing’s for sure, the recent crash was severe, and “such a heavy drawdown is likely to change investor perceptions and sentiment at a macro scale,” the report added.

Well, According to Glassnode, the said crash was “the second worst sell-off since the 2018-20 bear market, eclipsed only by July 2021, where the market fell -54% from the highs set in April.”