{"id":4340,"date":"2024-09-06T23:30:31","date_gmt":"2024-09-06T23:30:31","guid":{"rendered":"https:\/\/mycryptomania.com\/?p=4340"},"modified":"2024-09-06T23:30:31","modified_gmt":"2024-09-06T23:30:31","slug":"why-has-bitcoin-been-bearish-lately-cryptoquant-head-chimes-in","status":"publish","type":"post","link":"https:\/\/mycryptomania.com\/?p=4340","title":{"rendered":"Why Has Bitcoin Been Bearish Lately? CryptoQuant Head Chimes In"},"content":{"rendered":"

Bitcoin has continued its bearish momentum as its price has now slipped below $56,000. Here\u2019s what could be behind this trajectory, according to CryptoQuant\u2019s Head of Research.<\/p>\n

Bitcoin On-Chain Metrics Are All Giving Bearish Signals Right Now<\/h2>\n

In a new thread<\/a> on X, CryptoQuant Head of Research Julio Moreno has discussed why the original cryptocurrency has been struggling<\/a> recently. \u201cBitcoin price is down simply because there is no demand growth,\u201d notes the analyst.<\/p>\n

To showcase how demand for the asset has been looking like, Moreno has shared the chart for the \u201cApparent Demand\u201d indicator, which leverages on-chain data to estimate the 30-day demand for BTC among investors.<\/p>\n

According to the above graph, demand for Bitcoin had been high earlier in the year, according to this indicator. Still, after peaking in April, the indicator sharply declined towards zero.<\/p>\n

Since then, the Apparent Demand has continued to consolidate around this neutral level, which may be why the cryptocurrency\u2019s price has been locked in an overall bearish trajectory.<\/p>\n

The second indicator that the CryptoQuant head has cited is the Bitcoin Bull-Bear Market Cycle Indicator<\/a>. This metric combines a few BTC indicators related to profit and loss to produce one value that sums up the entire market.<\/p>\n

From the graph, it\u2019s visible that the the asset had been inside the historical \u201cOverheated Bull\u201d region from the perspective of CryptoQuant\u2019s Bull-Bear Market Cycle Indicator back when its price had set the all-time high (ATH)<\/a>.<\/p>\n

After the coin had cooled off from this top, the indicator flashed a normal \u201cBull\u201d signal, just like it had done in January and February. These bull market conditions were maintained until the crash early last month.<\/p>\n

During this plunge, BTC dropped below $50,000, and the Bull-Bear Market Cycle Indicator flagged the market as \u201cBear.\u201d Since then, the indicator has continued to consolidate around the transition boundary, jumping back and forth between Bull and Bear signals.<\/p>\n

In the past week or so, though, the metric has consistently maintained inside the Bear region, which may be why Bitcoin has registered a drawdown of 6% in this window.<\/p>\n

Moreno has also pointed out a price level to watch, as BTC is quite close to retesting it. The level in question is the lower band of the average cost basis of the BTC traders.<\/p>\n

At present, this level is situated around $55,500. It remains to be seen how a retest of this level goes if the cryptocurrency continues its decline.<\/p>\n

BTC Price<\/h2>\n

Bitcoin is currently trading around $55,900, which means the coin is pretty close to retesting the trader above the cost basis level.<\/p>","protected":false},"excerpt":{"rendered":"

Bitcoin has continued its bearish momentum as its price has now slipped below $56,000. Here\u2019s what could be behind this trajectory, according to CryptoQuant\u2019s Head of Research. Bitcoin On-Chain Metrics Are All Giving Bearish Signals Right Now In a new thread on X, CryptoQuant Head of Research Julio Moreno has discussed why the original cryptocurrency […]<\/p>\n","protected":false},"author":0,"featured_media":4341,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-4340","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-discovery"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/4340"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=4340"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/4340\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/media\/4341"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=4340"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=4340"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=4340"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}