Bitcoin Hit Support in Special Metric, Analytics Company Says: Here Are the Scenarios That Could Happen If It Falls or Bounces

Cryptocurrency analysis company Alphractal has announced that Bitcoin has entered a significant turning point by evaluating its current market dynamics. In its analysis of Bitcoin’s supply-demand balance, the company noted that the Long Term Realized Cap Impulse indicator has reached a historical support level.

This indicator plays a critical role in understanding the behavior of long-term investors and their relationship with prices. According to Alphractal, when the indicator reaches this level, two possible scenarios can arise:

• Positive Reaction and Renewed Demand Growth: This could indicate that long-term investors continue to hold their positions and the market is on solid footing.
• Support Break and Sharp Declines: A break below the support level may mean that even the most resilient players in the market are selling and may increase selling pressure.

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Alphractal stressed that the loss of this support could signal a significant change in market sentiment, but at the same time, maintaining this level could signal the beginning of a structured recovery process.

In addition, the analysis noted that Bitcoin has been liquidating short positions over the last 3 to 7 days. This development could trigger a new wave of volatility in the market, as it could lead market makers to begin closing some of their positions.

Alphractal’s warning is clear: The behavior of long-term investors during this period could determine the direction of the Bitcoin market.

*This is not investment advice.

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