Bitcoin

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<h2 id="key-points">Key Points</h2> 
<ul> 
 <li>Bitcoin’s value decreased by 8.42% over the week, leading to an increase in bearish market sentiment.</li> 
 <li>The near-zero accumulation trend score could have significant implications for the cryptocurrency.</li> 
</ul> 
<p> Bitcoin’s value has been fluctuating significantly in recent months. In 2024, Bitcoin reached an all-time high of $73k, largely due to the introduction of ETFs. However, the cryptocurrency has also experienced increased volatility.</p> 
<p>At the time of reporting, Bitcoin was valued at $54,239, a decline of 8.42% over the past week. Despite this decrease, trading volume has seen a 63.13% surge to $48.6 billion over the last 24 hours. This raises questions about the short and long-term market outlook for Bitcoin.</p> 
<h2 id="analyst-s-perspective">Analyst’s Perspective</h2> 
<p>Ali Martinez, a well-known crypto analyst, suggests that Bitcoin is seeing reduced participation. He based this on the declining accumulation trend score.</p> 
<p>The accumulation trend score, which is currently nearing zero, indicates whether market participants are accumulating or distributing Bitcoin. A score close to 1 indicates accumulation, while a score closer to 0 suggests distribution.</p> 
<p>When the score is at zero, it implies that there are no buyers and that distribution is occurring. Bitcoin usually sees an increase in accumulation when it hits a low in a bear cycle as investors buy the dip. However, if the bear market cycle continues, accumulation may decrease due to a lack of confidence.</p> 
<h2 id="market-sentiment-and-price-trends">Market Sentiment and Price Trends</h2> 
<p>From late August to early September 2024, the accumulation score has been nearing zero, indicating increased distribution and reduced accumulation. This suggests that large players and long-term holders are not buying, a sign of bearish sentiment.</p> 
<p>The market conditions have resulted in selling pressure, leading to a price decline. Bitcoin’s large holder SOPR has dropped from 2.4 to 1.6 over the past week, indicating that although long-term holders are selling at a profit, the profit margin is decreasing.</p> 
<p>This suggests that investors are becoming less confident in the short to medium-term outlook for Bitcoin and are preparing for a more bearish scenario. Bitcoin’s exchange netflows have remained relatively positive over the past week, with 4 out of 7 days seeing positive exchange netflows. This indicates that more investors are preparing to close their positions.</p> 
<p>If the selling pressure continues, there is a risk that Bitcoin’s value will fall below $50k.</p>

Is Bitcoin’s Dwindling Metric Cause for Trader Alarm?

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CoinEagle.com

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