A closely followed crypto analyst is warning that on-chain metrics suggest investors are losing interest in Bitcoin (BTC) amid the extended correction.
In a new strategy session, crypto trader Ali Martinez tells his 70,000 followers on the social media platform X that the warm supply realized price metric is signaling bearishness for Bitcoin.
Bitcoin’s warm supply realized price metric tracks the average buying price of all the coins that have not moved for a week to six months.
Says Martinez,
“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!”
The analyst also says that Bitcoin’s short-term holder realized price metric, the average acquisition price of all the BTC acquired in the past 155 days, is acting as a stiff resistance level for BTC.
“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 22nd, BTC has struggled to break above this level, now at $63,250. Until BTC reclaims this area as support, there’s a risk of continued selling pressure. Caution is advised.”
Lastly, the analyst says that the exchange volume momentum indicator is showing a drop-off in Bitcoin investment activity.
The metric tracks a crypto asset’s monthly average of combined inflows and outflows against the yearly average.
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Author: Daily Hodl Staff
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