Bitcoin Hit Support in Special Metric, Analytics Company Says: Here Are the Scenarios That Could Happen If It Falls or Bounces

Cryptocurrency analysis company Alphractal has announced that Bitcoin has entered a significant turning point by evaluating its current market dynamics. In its analysis of Bitcoin’s supply-demand balance, the company noted that the Long Term Realized Cap Impulse indicator has reached a historical support level.

This indicator plays a critical role in understanding the behavior of long-term investors and their relationship with prices. According to Alphractal, when the indicator reaches this level, two possible scenarios can arise:

• Positive Reaction and Renewed Demand Growth: This could indicate that long-term investors continue to hold their positions and the market is on solid footing.
• Support Break and Sharp Declines: A break below the support level may mean that even the most resilient players in the market are selling and may increase selling pressure.

The chart shared by Alphractal, monitoring the support levels in the Long Term Realized Cap Impulse metric.

Alphractal stressed that the loss of this support could signal a significant change in market sentiment, but at the same time, maintaining this level could signal the beginning of a structured recovery process.

In addition, the analysis noted that Bitcoin has been liquidating short positions over the last 3 to 7 days. This development could trigger a new wave of volatility in the market, as it could lead market makers to begin closing some of their positions.

Alphractal’s warning is clear: The behavior of long-term investors during this period could determine the direction of the Bitcoin market.

*This is not investment advice.

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