Waiting For The Bitcoin Bull Run To Resume? Here’s The Indicator To Watch For
April 13 2024 - 7:00AM
NEWSBTC
The bullish momentum of the Bitcoin price has dwindled over the
past few weeks, putting the progression of the crypto bull cycle
into question. On Friday, April 12, the crypto market witnessed a
flash crash, causing the premier cryptocurrency’s value to drop
from $70,000 to below $67,000. This latest downturn underscores the
struggle of the Bitcoin price to return to its recent all-time high
of $73,737, which was forged in mid-March. On-chain analytics
platform Santiment has identified a particular Bitcoin metric that
may signal the resumption of the bull run. Bitcoin Bull Run May
Resume If This Metric Falls In a recent post on X, blockchain
intelligence firm Santiment provided an exciting insight into the
current cycle and the price performance of Bitcoin. The firm
pinpointed the Mean Dollar Invested Age metric as one of the
indicators to watch as the market leader moves sideways. Related
Reading: Cardano (ADA) Prints ‘Undeniable Bull Run’ Signal: Crypto
Analyst According to Santiment, the Mean Dollar Invested Age metric
tracks the average age of investment in an asset that has sat in
the same wallet. When this indicator is rising, it means that
investments are getting more stagnant and old coins are being held
in the same wallets. Conversely, a decreasing Mean Dollar Invested
Age metric implies that investments are flowing back into regular
circulation. This “falling line” also suggests an increase in
network activity. A chart showing Bitcoin's Mean Dollar
Invested Age | Source: Santiment/X From a historical perspective,
Bitcoin exhibited a falling Mean Dollar Invested Age line during
the previous bull cycles. According to Santiment, this has been the
case for the premier cryptocurrency in the current bull run, which
kicked off in late October 2023. The on-chain analytics
platform, however, noted that Bitcoin’s Mean Dollar Invested Age
line has been moving sideways over the past couple of weeks. This
phenomenon is even more shocking, considering that the
highly-anticipated halving event is about a week away. The Bitcoin
halving will see the miners’ reward slashed in half (from 6.25 BTC
to 3.125 BTC). It is a bullish event that has contributed to the
optimistic outlook – borne by most investors – for the premier
cryptocurrency in 2024. From Santiment’s latest report, investors
might want to keep their eyes peeled for the Bitcoin Mean Dollar
Invested Age metric. And the bull run is likely to continue if the
BTC’s Mean Dollar Invested Age line resumes its fall, which would
imply that major stakeholders (like whales) are back to moving
coins into regular circulation. BTC Price At A Glance As of this
writing, Bitcoin is trading around $66,548, reflecting a notable 6%
price decline in the past 24 hours. Related Reading: Traders
Forecast Massive Rally For Altcoins, But Why Is Sentiment “Down”?
Bitcoin price falls below $67,000 on the daily timeframe | Source:
BTCUSDT chart on TradingView Featured image from iStock, chart from
TradingView
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