By Michael Scott
Blockchain analysts are warning of waning momentum for the Bitcoin bull market. The analysts cite subsiding demand for Bitcoin from the new investors could trigger panic selling by short-term holders.
Analysts are pessimistic about the Bitcoin bull market, pointing to the likely end of the euphoric momentum. Reflexivity Research executive Will Clemente observed on Tuesday, June 18, that the Bitcoin price had plunged 3% to exchange hands in a range of around $64,500.
Clemente noted that the decline in Bitcoin’s price left the token within the short-term holder cost basis, estimated at $63,800 per Glassnode data. This constitutes the on-chain indicator that tracks the average price at which recent investors bought the token.
Bitcoin Plunges as Demand by New Investors Decline
The Reflexivity Research co-founder expressed pessimism and desired an end to the consecutive days of decline in Bitcoin’s price. The researcher termed this a good line to draw the trends.
The on-chain analytics CryptoQuant indicated in a June Tuesday 18 report that the decline has slipped below the short-term holders’ price estimated at $65,800. CryptoQuant implied that Bitcoin lost the support level.
The on-chain analysts indicate that short-term holders would likely panic sell than their long-term in the view that the investments slip. They noted that selling is reasonable for such investors, particularly with the pivotal line realized and further decline triggering significant losses.
The analysts recall the previous instance when Bitcoin lost the support line at the beginning of last month when the price plunged 8% to exchange below $57,000. A correction of 8%- 9% would drag Bitcoin below $60,000.
The crypto industry saw its assets slip into the red as Federal Reserve (Fed) pessimism engulfed the community, and Bitcoin miners continued their sales.
Bitcoin continues to plunge below $65,000, the lowest this month. In contrast, the zkSync token, unveiled recently, suffered the greatest loss among the top coins by market value.
A reflection on market activity reveals that the crypto space suffered a 2.5% decline in market value from $2.55 trillion to $2.48 trillion, as per CoinGecko. Lower price consolidation is evident, as other metrics indicate waning demand from new investors.
The global crypto market has witnessed a slight rebound by 1.1% to $2.49 trillion in the past 24 hours. The space saw a $149 billion trading volume, with Bitcoin dominance estimated at 51.5%, followed by Ethereum at 17.3%, as per CoinGecko data.
Miners dump portions of their produced coins at a time when the Tether USDT stablecoin is witnessing a decelerating growth rate. The dollar-pegged stablecoin is typically utilized in the Bitcoin trade.
Bitcoin Indicating Low Bullish Momentum
Also, Bitcoin whales have reduced the rate of coin accumulation, though they ramped up the acquisition late last month. The cryptoQuant market indicator shows a low bullish momentum for Bitcoin.
CryptoQuant research chief Julio Moreno indicates the realized price is $30,400. The metric examines the cost basis for Bitcoin holders, both short—and long-term Hodlers.
The analytic firm indicates that Bitcoin’s market price straying away from this level would entrench the crypto asset in a bull market.
Moreno indicated that in comparing the realized price relative to the market price, the Bitcoin price is 2.8 times, termed the MVRV ratio. It suggests we are halfway into the bull market, with price tops rising when at 4.0 and above.