Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesEarnWeb3SquareMore
Trade
Spot
Buy and sell crypto with ease
Margin
Amplify your capital and maximize fund efficiency
Onchain
Going Onchain, without going Onchain!
Convert
Zero fees, no slippage
Explore
Launchhub
Gain the edge early and start winning
Copy
Copy elite trader with one click
Bots
Simple, fast, and reliable AI trading bot
Trade
USDT-M Futures
Futures settled in USDT
USDC-M Futures
Futures settled in USDC
Coin-M Futures
Futures settled in cryptocurrencies
Explore
Futures guide
A beginner-to-advanced journey in futures trading
Futures promotions
Generous rewards await
Overview
A variety of products to grow your assets
Simple Earn
Deposit and withdraw anytime to earn flexible returns with zero risk
On-chain Earn
Earn profits daily without risking principal
Structured Earn
Robust financial innovation to navigate market swings
VIP and Wealth Management
Premium services for smart wealth management
Loans
Flexible borrowing with high fund security
Crypto Analyst Sounds Alarm: Investor Interest in Bitcoin Fading Fast

Crypto Analyst Sounds Alarm: Investor Interest in Bitcoin Fading Fast

CryptodnesCryptodnes2024/09/04 12:24
By:Cryptodnes

A prominent crypto analyst has raised concerns that Bitcoin (BTC) is losing momentum among investors, as indicated by recent on-chain metrics during the current market downturn.

In a recent update, Ali Martinez pointed out that a key metric called the warm supply realized price is showing bearish signs for Bitcoin . This metric tracks the average purchase price of BTC that hasn’t been moved in the last one to six months.

#Bitcoin above the warm supply realized price is a positive sign, while dropping below it may indicate the start of a longer bear market. Right now, this level is $66,000. If $BTC stays under it, bulls should proceed with caution! pic.twitter.com/QWzTquQ5Mh

— Ali (@ali_charts) August 31, 2024

When Bitcoin trades above this level, it is generally seen as a positive signal. However, if it falls below, it could signal the beginning of a prolonged bearish phase. Currently, this threshold is set at $66,000, and with Bitcoin trading below it, there’s growing concern that bulls should approach with caution.

Martinez also highlighted that Bitcoin’s short-term holder realized price, which reflects the average buying price of BTC acquired within the past 155 days, is acting as a significant resistance point.

READ MORE:
BOJ’s Rate Hike Plans May Impact Bitcoin Prices

This metric is crucial in understanding the behavior of recent Bitcoin buyers, who are more prone to selling when the price dips below their entry point.

The Short-Term Holder Realized Price helps gauge the behavior of recent #Bitcoin buyers. It acts as resistance in downtrends because these holders are more likely to sell if the price falls below their entry point.

Since June 22, #BTC has struggled to break above this level,… pic.twitter.com/VEF0q5xj0L

— Ali (@ali_charts) September 1, 2024

Since June 22nd, Bitcoin has struggled to surpass this level, currently sitting at $63,250. Until Bitcoin breaks through and holds this level as support, there remains a risk of ongoing selling pressure.

Moreover, the exchange volume momentum indicator, which compares the monthly average of Bitcoin’s inflows and outflows with the yearly average, is showing a decline. This suggests that investment activity and interest in Bitcoin are waning, further indicating that network usage is decreasing as investor enthusiasm fades.

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Locked for new tokens.
APR up to 10%. Always on, always get airdrop.
Lock now!