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Bitcoin’s recent rally was a bull trap, according to data analytics platform Glassnode.

Bitcoin’s recent rally was a bull trap, according to data analytics platform Glassnode.

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Answer Bitcoin’s recent rally was a bull trap, according to data analytics platform Glassnode.

Despite the recent surge in the price of both Bitcoin and Ethereum, which may have been driven by the Federal Reserve and the President of the United States of America, data analytics platform Glassnode sees no clear signs of a reversal of the bearish market trend.

Glassnode’s evidence shows low transaction fees and a lack of new active addresses.

Was Bitcoin’s recent rally fake?

After several consecutive weeks of falling prices, Bitcoin finally regained some ground last week and charted a 6-week high above $24,500.

This came shortly after the US Federal Reserve raised interest rates by 75 basis points, and President Joe Biden refused to acknowledge that the country had entered a recession, despite negative GDP quarters.

Read:Coinbase reveals the reasons that could lead to a decline in the price of Bitcoin and Ethereum

Bitcoin failed to continue rising and fell below $24,000 to trade at $23,300 today.

In its latest State of the Market Report, respect Glassnode drop to relatively low network usage.

This is evidenced by network fees, which tend to rise when there are more users interacting on Bitcoin (usually in bull markets) and pull back in bear markets.

She told Glassnode that there has been no noticeable fee increase yet, and the company also reiterated its stance after showing current network activity.

Ethereum fees witness the same:

Network congestion and low fees in terms of Bitcoin price performance, are about the same as for Ethereum.

Gas fees paid on the second largest blockchain have fallen to multi-month lows, with the average price being less than $5.

This causes problems for Ethereum, because the EIP-1559 protocol, cannot burn enough Ether due to lack of network usage.

As such, the cryptocurrency has become very inflationary once again.

Read:DBS Bank plans to launch cryptocurrency trading services for individuals by the end of 2022

But the Ethereum community is hoping that will change soon as the integration is supposed to be upgraded in the next few months.

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