BTC Faces Further Downside Despite Accumulation by Long-Term Holders

IconCryptoNewsTerminal Staff10 Jul, 2024

cryptonews.jpg

BTC Faces Further Downside Despite Accumulation by Long-Term Holders

Despite the ongoing accumulation by long-term holders, several on-chain metrics suggest that Bitcoin (BTC) may experience further downside potential. CryptoQuant's recent report highlights several bearish indicators: Profit and Loss (P&L) Index: When the P&L Index falls below its 365-day moving average (MA), BTC has historically seen significant corrections. Currently, the P&L Index is hovering around this crucial level. Bull-Bear Market Cycle Indicator: This indicator is approaching its neutral line. If prices drop further and the indicator falls below the line, BTC could enter a bear market. However, it's important to note that long-term holders continue to accumulate BTC at a rapid pace, with an accumulation rate of 6.3% per month, the highest since April 2023.

Related News