A closely watched crypto analyst warns that on-chain metrics indicate investors are losing interest in Bitcoin (BTC) amid the prolonged correction.
In a new strategy session, crypto trader Ali Martinez tells According to its 70,000 followers on social media platform
Bitcoins warm supply realized price metric tracks the average purchase price of all coins that have not moved for a week to six months.
says Martinez,
“Bitcoin above the price achieved by the hot supply is a positive sign, while a drop below could indicate the start of an extended bear market. Currently, this level is $66,000. If BTC continues to fall, bulls should proceed with caution!”
The analyst too say that the short-term holder of Bitcoin realized the price metric, the average purchase price of all BTC acquired in the last 155 days acts as a firm resistance level for BTC.
“The holder’s short-term 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, now at $63,250. Until BTC regains this area as support, there is a risk of continued selling pressure. Caution is advised.”
Finally, the analyst say that the exchange rate volume momentum indicator shows a decline in Bitcoin investment activity.
The metric traces the monthly average of the combined inflows and outflows of a crypto asset relative to the annual average.
Says Martinez,
“The exchange volume momentum indicator shows a continued decline in exchange-related on-chain activity, which typically indicates lower investor interest in Bitcoin and reduced network usage.”
Bitcoin is trading at $59,697 at the time of writing, up 3.29% in the past 24 hours.
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Generated image: Midjourney