Post
Bitcoin's rebound on Tuesday may provide investors with a brief respite, but it also risks entering a deeper 'cooling phase'.
A decline in on-chain activity and ongoing institutional fund outflows suggest that the market may be entering a more cautious period after setting a strong historical high. On-chain data shows that network activity has significantly slowed, which corresponds with Bitcoin's recent price pullback.
Bitcoin is currently trading at $111,000, up 2.52% from Monday's low of $108,550. This price is still down over 10% from the high of $124,128 on August 14. The slowing of Bitcoin's price coincides with a period of rising selling pressure from long-term holders.
As of Friday, the fund flow pricing model sets an expected price of $107,000, and if outflows continue, there is a risk of falling below the psychological level of $100,000.
Particularly in September, the average return over the past 12 years has been -3.77%, while historically the third quarter has seen negative returns. Due to the potential for further declines, it is recommended not to open new long positions at current levels and to adopt a 'wait and see' attitude.
Long positions only make sense if BTC stabilizes and maintains above $118,000.
A decline in on-chain activity and ongoing institutional fund outflows suggest that the market may be entering a more cautious period after setting a strong historical high. On-chain data shows that network activity has significantly slowed, which corresponds with Bitcoin's recent price pullback.
Bitcoin is currently trading at $111,000, up 2.52% from Monday's low of $108,550. This price is still down over 10% from the high of $124,128 on August 14. The slowing of Bitcoin's price coincides with a period of rising selling pressure from long-term holders.
As of Friday, the fund flow pricing model sets an expected price of $107,000, and if outflows continue, there is a risk of falling below the psychological level of $100,000.
Particularly in September, the average return over the past 12 years has been -3.77%, while historically the third quarter has seen negative returns. Due to the potential for further declines, it is recommended not to open new long positions at current levels and to adopt a 'wait and see' attitude.
Long positions only make sense if BTC stabilizes and maintains above $118,000.