Bitcoin Price Falls 2.25% in the Past 24 Hours, 16% Lower than the Historical High
Bitcoin’s price has dropped by 2.25% in the past 24 hours, currently 16% lower than the historical high of $73,835 reached on March 14th. In the last 30 days, Bitcoin has decreased by 8.75%, and in the last three months, it has fallen by 5.5%. This ongoing downward trend since June has led market analysts to speculate whether Bitcoin has reached its peak cycle.
Is Bitcoin Showing Signs of Weakness?
Charles Edwards, the founder of Capriole Investments, emphasized that various data points indicate that Bitcoin has been unable to reach new highs after two attempts, suggesting its potential vulnerability. In a recent communication, Edwards mentioned that the inflation rate of long-term Bitcoin holders has been increasing for the past two years, indicating increased selling pressure. Visit COINTURK FINANCE for the latest financial and business news.
Why is Market Inflation Important?
According to Glassnode data, the LTH (Long-Term Holder) market inflation rate tracks the annual accumulation or distribution rate excluding daily miner issuance. As long-term holdings decrease, an increase in value implies greater selling pressure. Historically, at the peak of a bull market, market inflation has surpassed nominal inflation, indicating a possible end of the cycle.
Key Points of Dormancy Flow Data
Another crucial indicator to understand Bitcoin market cycles is dormancy flow data, which assesses the amount of tokens consumed relative to the overall trend. Glassnode data shows a sharp increase in Bitcoin’s dormant Z-score in the past 90 days. Edwards pointed out that this indicator reached a significant peak in April, suggesting a noticeably longer average lifespan for assets spent in 2024.
– The rise in LTH inflation rate is associated with increased selling pressure.
– Dormancy flow data peaks typically predict cycle peaks within three months.
– The current dormant flow Z-score indicates that Bitcoin may be overvalued relative to transactional assets, implying a bearish trend.
In conclusion, these indicators collectively suggest that Bitcoin’s price may have reached its peak, indicating a bearish trend in the broader cryptocurrency market. This analysis is supported by various data points, providing a comprehensive perspective on Bitcoin’s current market position.
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Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies are highly volatile and therefore carry risks, and they should conduct their own research.