Factors Behind Bitcoin (BTC) Slump: CryptoQuant Analyst Highlights Lack of Demand Growth
Bitcoin’s price is being held back by a lack of demand growth, as pointed out by the head of research at CryptoQuant, Julio Moreno. Moreno highlighted on X that the declining demand for BTC has led to bearish territory for most valuation metrics. He emphasized the significance of monitoring the $55,000 price level, specifically the trader on-chain realized price lower band.
The realized price of Bitcoin represents the average price of coins in circulation, calculated based on their last movement. Currently, BTC is valued at $53,836, trading below the $55,000 mark. Over the past 24 hours, the leading crypto asset by market cap has experienced a more than 4% decline, and in the past week, it has dropped over 9%.
Recently, Moreno conducted a simulation of Bitcoin prices for September, projecting an average month-end price of around $55,000. The simulations indicated that prices would fluctuate between $44,000 and $66,000, considering historical daily returns in September.
Additionally, Moreno observed that long-term BTC holders are selling at reduced profit margins, signaling a bearish trend. He pointed out that the long-term holder SOPR ribbons have been trending downwards since late July, suggesting a potential buying signal when these moving averages begin to trend upwards.
SOPR, which stands for spent output profit ratio, tracks whether coins are being sold at a profit or loss. These insights from Moreno shed light on the current state of Bitcoin’s market dynamics and the factors influencing its price movements.
It is essential for investors and enthusiasts to stay informed about such developments in the crypto space to make well-informed decisions. Monitoring key indicators and market trends can provide valuable insights into the future performance of digital assets like Bitcoin.
