Bitcoin’s Price Struggles Amid Declining Demand, Research Head Reports
According to Julio Moreno, Head of Research at CryptoQuant, Bitcoin’s price is under pressure due to diminishing demand.
Moreno highlighted on social media that most valuation metrics for Bitcoin are currently showing bearish signals.
#Bitcoin price is down simply because there is no demand growth. Small 🧵
Indeed, demand is declining right now.
Basically all valuation metrics are in bearish territory. pic.twitter.com/kmwb3pvpUc
— Julio Moreno (@jjcmoreno) September 5, 2024
A critical price point to monitor is $55,000, which represents the lower bound of the on-chain realized price for Bitcoin. The realized price is the average price at which Bitcoins were last moved, and Bitcoin is presently trading below this level, around $53,836.
READ MORE: Bitfinex Predicts Bitcoin Could Drop to $40,000 Amid September Rate Cut Uncertainty
Bitcoin has experienced a decline of over 8% in August, extending the loses in September. Moreno’s simulation for September suggests that Bitcoin prices might average around $55,000 by month’s end, with potential fluctuations between $44,000 and $66,000, based on historical daily returns.
Additionally, Moreno pointed out that long-term Bitcoin holders are realizing profits at reduced margins, a potential bearish sign. The Spent Output Profit Ratio (SOPR) for long-term holders has been trending downward since late July, with a positive signal anticipated only if these moving averages begin to trend upward.
Long-term holders are spending at lower profit margins. This is bearish.
Long-term holder SOPR ribbons: most moving averages are trending downwards since late July.
Buying signal would be when the moving averages start to trend upwards. pic.twitter.com/C1Ocys3AFa
— Julio Moreno (@jjcmoreno) September 1, 2024
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
