Bear Signals from Bitcoin Macro Index Raise Concerns Over BTC Price Recovery
The Bitcoin Macro Index signals bearish trends for Bitcoin prices, casting doubt on recovery to $110,000 levels. Data indicates struggling metrics and potential long-term peaks, suggesting further challenges may lie ahead for Bitcoin in the near term.
The Bitcoin trade faces significant uncertainties as a recent bearish divergence emerges from the Bitcoin Macro Index, suggesting a troubling outlook. This warning stemmed from a social media conversation where analysts highlighted data from Capriole Investments’ index, which monitors various price metrics related to Bitcoin.
As Bitcoin struggles to regain previous peak values, onchain metrics are losing their bullish momentum. Charles Edwards, the founder of the Bitcoin Macro Index, developed this tool in 2022 to analyze historical data on Bitcoin’s relative value without including price data or technical analysis. It has been indicating lower highs in the last months of 2023, suggesting a possible long-term peak for Bitcoin prices.
In recent analyses, platforms such as CryptoQuant have noted that several key Bitcoin price metrics are underperforming. Among the metrics in question are the Market Value to Realized Value (MVRV) and Net Unspent Profit/Loss (NUPL). These indicators signify that Bitcoin may face turbulence in the near to mid-term, according to contributor Burak Kesmeci. For a positive shift, the Inter-Exchange Flow Pulse (IFP) must surpass its 90-day simple moving average.
The emergence of bearish signals from the Bitcoin Macro Index raises concerns about Bitcoin’s ability to recover to previous high price levels. The noted bearish divergence and other struggling metrics point to potential challenges ahead. Investors are advised to remain vigilant and conduct thorough research before making investment decisions, as risks are inherent in trading and investment activities.
Original Source: www.tradingview.com
Post Comment