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BTC’s price was on the verge of dropping below its realized price-to-liveliness ratio.  The coin was testing a key support level at press time.  Bitcoin [BTC] investors have been struggling for quite some time now as the king coin continued to lose value. In fact, a recent analysis points out a development that indicated a bigger price drop in the coming weeks. Let’s have a closer look at what is going on with Bitcoin.  Why Bitcoin might drop to $31k As per CoinMarketCap’s data, the king coin witnessed a nearly 7% price drop last week. The past 24 hours were also bearish as BTC’s price declined marginally. At the time of writing, BTC was trading at $54,306.75 with a market capitalization of over $1 trillion. A look at IntoTheBlock’s data revealed that after the latest price correction, over 41 million BTC addresses were in profit, which accounted for 77% of the total number of Bitcoin addresses. Source: IntoTheBlock In the meantime, Ali, a popular crypto analyst, posted a tweet highlighting a notable difference. The tweet talked about the relation between BTC’s price and its realized price-to-liveliness ratio. Historically, whenever BTC’s price falls below the realized price-to-liveliness ratio, it has led to further price declines. To be precise, a slip under that metric pushes BTC down towards its realized price. Such incidents have happened back in 2019, 2020, and 2022. At press time, such a bearish crossover happened. This suggested traders can expect a BTC drop to its realized price again, which at the time of writing was $31.5k. Source: X Odds of BTC remaining bearish  Since it seemed likely for BTC to drop if history repeats, AMBCrypto checked other datasets to find out what they suggested regarding a correction. We found that BTC’s investor capitalization increased substantially. Historically, whenever BTC’s…

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Filed under: News - @ September 8, 2024 9:04 pm