The lack of expected results from the stablecoin meeting hosted by the White House in the US, coupled with an increasingly hawkish macroeconomic outlook, caused Bitcoin to fall to $67,000.
While experts expect further declines in Bitcoin ($BTC) price, Joao Wedson, CEO of analytics company Alphractal, explained the critical levels to watch for $BTC.
The renowned CEO noted that these levels are updated daily and represent the true cost of capital across the network.
“Here are the current values for Bitcoin’s mainchain price-based metrics:
CVDD: $49.153 — The most accurate pattern ever created for identifying price lows. Historically, this is a good zone to buy everything.
LTH Realized Price: $44,349 — The LTH Realized Price can function as an indicator of strong support levels during bear markets, as these prices are where long-term investors have historically shown a willingness to buy and hold, regardless of short-term price movements. When the price reaches this level, the network enters the extreme fear zone.
Investor Price: $50,581 — Historically, this is a level where the decision is simple: Buy Bitcoin. Nothing else.
Realized Price: $55,098 — When the current market price falls below the realized price, it means investors have effectively incurred a paper loss. Historically, these periods have occurred at major cycle bottoms. Below this level, the market enters a period of general discouragement.
Actual Market Average Price: $79,689 — This is the last structural support level of the bull market. Bitcoin has already lost this level, which has reversed the trend in the market.
Active Realized Price: $86,884 — This is the average cost for the most active addresses on the network. Risk increases below this level.
STH Realized Price: $92,645 — The STH Realized Price can provide insight into the current sentiment and momentum in the Bitcoin market and highlight potential resistance levels or points where selling pressure may increase. Historically, in Bitcoin bull markets, the price typically trades above the price achieved by short-term investors. In bear markets, the price typically trades below the price achieved by short-term investors. This is the cost floor for individual investors in recent times. A drop below this level deters short-term investors.
Alphractal’s CEO recently stated that these valuations for Bitcoin are not definitive and that these levels change daily as capital moves.
*This is not investment advice.
