The post Glassnode Predicts BTC Price Drop: Bitcoin (BTC) Market Analysis Signals Potential Decline appeared on BitcoinEthereumNews.com.

Bitcoin’s price may be on the verge of a significant drop, according to Glassnode’s latest analysis. Long-term holders’ market inflation rate is a key indicator of Bitcoin’s future direction. “The current market dynamics suggest a potential shift in Bitcoin’s price trajectory,” says Glassnode. Discover the latest insights on Bitcoin’s potential price movements and what it means for investors. What Could an Increase in BTC Mean? In bullish cycles, when market inflation is below nominal inflation, it suggests that long-term investors are accumulating Bitcoin. This scenario might lead to a price rise for BTC. Conversely, if market inflation exceeds nominal interest, it can significantly increase selling pressure from investors, possibly precipitating a substantial price decrease. Currently, the metric has formed the second pattern, with Bitcoin trading at $69,164, representing a 2.98% increase over the last week. The key metric here is the long-term holder-net unrealized profit/loss (LTH-NUPL), which offers insights into the behavior of long-term holders. As of now, LTH-NUPL is in the ‘belief’ zone, indicating that holders who have maintained their tokens for at least 155 days have strong faith in Bitcoin’s potential. However, these same holders could also contribute to BTC’s distribution, potentially affecting its short-term outlook. Where is the Critical Zone for Bitcoin? The liquidation heatmap is a tool that assists investors in identifying the best liquidity positions. When liquidity is concentrated in a specific area, it suggests that prices might move in that direction. However, these high liquidity zones could also act as resistance or support levels. According to Hyblock’s data, a magnetic zone has been detected at $72,350, indicating a possible move of Bitcoin towards this level. Nevertheless, this zone could serve as resistance for BTC. If Bitcoin reaches this price and faces rejection, it could result in significant losses, with another high liquidity area at…

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Filed under: News - @ May 27, 2024 1:12 am