Happycoin.club - According to experts from the analytical company CryptoQuant, Bitcoin has overcome a key resistance level in this bullish cycle, but the asset shows no signs of recovery in the short term.
The futures market is dominated by short selling and short-covering transactions. Investors are increasingly abandoning long positions, and Bitcoin traders have been reducing their holdings of the flagship currency since late May 2024.
Traders increased their holdings from October 2023 to early May 2024, when Bitcoin rose to $70,000. We would need to see a recovery in trader demand for Bitcoin for the price to recover, CryptoQuant analysts said.
The decline in the price of Bitcoin has caused traders' profit margins to shrink to 18%, the lowest since November 2022, when cryptocurrency exchange FTX went bankrupt. And the leading cryptocurrency's market value to realized value (MVRV) ratio has fallen below its 365-day moving average.
Investors should monitor these types of valuation metrics to assess the potential for a price rebound or further correction, experts said.
According to analysts at CryptoQuant, this situation historically indicates the beginning of a bear market and a further decline in the price of Bitcoin.
