The post Is Bitcoin’s Bull Run Over? On-Chain Data Points to a Cycle Top appeared on BitcoinEthereumNews.com.

Bitcoin’s recent on-chain metrics indicated a potential market top, with a cycle peak similar to previous years. Analysts observed increased selling activity, aligning with historical trends. Bitcoin [BTC] was experiencing a downturn at press time, reversing its earlier rally above $63,000. Over the past week, the cryptocurrency has now seen a 1.1% drop, with a more significant 2.7% decline in the last 24 hours alone, bringing its trading price down to $60,929.  Amid these market movements, Charles Edwards, the founder of Capriole Investments, has indicated that various on-chain metrics suggest a potential weakening in Bitcoin’s market strength. Bitcoin’s turning point? Charles Edwards pointed to various on-chain indicators as potentials of market exhaustion. One significant sign is the behavior of Bitcoin’s Long-Term Holder (LTH) inflation rate, which Glassnode monitors.  Source: Capriole Investments The LTH inflation rate, which measures the annualized rate at which long-term holders are selling their Bitcoin relative to new coins mined, has seen a sustained increase over the past two years. Currently, it hovers near a critical mark historically associated with market tops. Edwards noted that the LTH market inflation rate nearing the 2.0 nominal inflation rate often signals a cycle peak.  At press time, the king coin was dangerously close at 1.9. Another pivotal metric discussed by Edwards was the Dormancy Flow, which evaluated the value of spent coins relative to their age and the overall transaction volume. Recent data has shown a sharp rise in the Dormancy Z-score, particularly in April 2024, which could imply that older coins are moving at a rate suggestive of a cycle top. Source: Capriole Investments Edwards elaborated, “Peaks in this metric (z-score) typically see cycle tops just three months later. Well, it’s now three months later. The price has only gone down, and the Dormancy Z-Score peak remains with a…

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Filed under: News - @ July 4, 2024 11:24 am