The post Bitcoin’s realized price struggles show growing weakness in price appeared on BitcoinEthereumNews.com.

Bitcoin is facing new pressures, and it shows in the market data. Both long-term and short-term holders are making moves that suggest growing weakness in Bitcoin’s price. For long-term holders, there’s been a sharp reduction in their realized cap, dropping by $6 billion. In contrast, short-term holders have been increasing their risk, taking more aggressive positions as they push their realized cap upward by $6 billion. Short-term holders are those who hold Bitcoin for less than a year, often trading on price fluctuations for quick profits. These are your typical day traders, swing traders, and scalpers. They thrive on Bitcoin’s volatility and use it to their advantage, moving in and out of the market quickly. But long-term holders are in it for the long game, usually keeping their Bitcoin for over a year. These holders believe in Bitcoin’s long-term future and typically follow a buy-and-hold strategy. Bitcoin’s realized price faces tough resistance Another huge signal comes from the 1d ~ 1w UTXO Age Band. This metric shows the realized price of Bitcoin that’s been held between one day and one week. The realized price is calculated based on when Bitcoin was last moved, not its current value. Traders are paying attention to this level, with multiple interactions between the market price and the realized price happening in a short time. Each time the market price tries to stay above this level, it gets rejected. This means that momentum is weakening. Open Interest has been giving off signals that corrections are imminent. Over the last four months, corrections and liquidations have been triggered when Open Interest moves above the +1 standard deviation level.  On September 24, Open Interest dropped by 8%. Leverage is also playing a big role. Since May, leverage on Bitcoin’s tops has averaged 15.7%, showing that traders are…

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Filed under: News - @ October 6, 2024 10:59 pm