Bitcoin price bullish momentum has waned in recent weeks, calling into question the progress of the crypto bull cycle. On Friday, April 12, the crypto market witnessed a sudden crash, causing the value of the leading cryptocurrency to drop from $70,000 to less than $67,000.
This latest downturn underlines Bitcoin price’s struggle to return to the recent all-time high of $73,737 reached in mid-March. On-chain analytics platform Santiment has identified a specific Bitcoin metric that could point to the resumption of the bull run.
Bitcoin Bull Run may resume if this metric drops
In a recent one message on X, blockchain intelligence firm Santiment offered exciting insight into Bitcoin’s current cycle and price performance. The company cited the Mean Dollar Invested Age measure as one of the indicators to watch as the market leader makes a sideways move.
According to Santiment, the Mean Dollar Invested Age metric tracks the average age of investment in an asset that has been in the same wallet. When this indicator rises, it means that investments are stagnant and old coins are kept in the same wallet.
Conversely, a declining Mean Dollar Invested Age measure implies that investments are flowing back into mainstream circulation. This ‘declining line’ also indicates an increase in network activity.
A chart showing Bitcoin's Mean Dollar Invested Age | Source: Santiment/X
From a historical perspective, Bitcoin showed a declining Mean Dollar Invested Age line during the previous bull cycles. According to Santiment, this has been the case for the major cryptocurrency in the current bull run, which started in late October 2023.
However, the on-chain analytics platform noted that Bitcoin’s Mean Dollar Invested Age line has been moving sideways in recent weeks. This phenomenon is even more shocking considering that the long-awaited halving takes place in about a week.
The Bitcoin halving halves the reward for miners (from 6.25 BTC to 3.125 BTC). It is a bullish event that has contributed to the optimistic outlook – carried by most investors – for the leading cryptocurrency in 2024.
Santiment’s latest report shows that investors may want to keep their eyes peeled for the Bitcoin Mean Dollar Invested Age measure. And the bull run is likely to continue if BTC’s Mean Dollar Invested Age line resumes its decline, which would imply major stakeholders (like whales) bringing coins back into regular circulation.
BTC price at a glance
At the time of writing, Bitcoin is trading around $66,548, reflecting a notable 6% price drop in the past 24 hours.
Bitcoin price falls below $67,000 on the daily timeframe | Source: BTCUSDT chart on TradingView
Featured image from iStock, chart from TradingView
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