If popular analyst Ali Martinez is to be believed, then we should be concerned about the Bitcoin price based on some on-chain indicators. In a new analysis, Martinez says that the Warm Supply Realized Price indicator is giving bad signals for Bitcoin.
Bearish Signals for Bitcoin
The Warm Supply Realized Price tracks the average purchase price of all coins that have not changed addresses for a week to six months. “A Bitcoin price above the Warm Supply Realized Price is a positive signal, while a drop below it can herald the start of a bear market. This level is currently at $66,000. If Bitcoin remains below this level for a long time, we should be careful!”
Martinez’s story about the Warm Supply Realized Price is clear and that may also explain why the Bitcoin price is currently under so much pressure. More and more people are losing confidence, but that is actually quite strange.
Measured since the beginning of 2024, the Bitcoin price is still doing well. We may have been spoiled with an early all-time high, but in November 2022 we would probably have signed for the current prices right away. That’s how quickly sentiment can change.
Martinez further indicates that the Realized Price currently represents strong resistance for Bitcoin for short-term holders.
Strong resistance for Bitcoin
The Realized Price for short-term holders is the average purchase price of people who purchased their Bitcoin in the past 155 days.
“The Realized Price for short-term holders reflects the behavior of recent buyers. It is a resistance in a downtrend, as these holders are more likely to sell if the price falls below their purchase price. Since June 22, Bitcoin has struggled to break above this level, which now sits at $63,250.
Until Bitcoin reclaims this level as support, there is an increased risk of selling pressure,” said Ali Martinez.
Based on the chart above, Martinez also concludes that volume on exchanges is declining, indicating that interest in Bitcoin appears to be declining at the moment.
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Source: https://newsbit.nl/analist-ziet-bearish-signalen-voor-bitcoin-op-de-blockchain/
