Bitcoin tried to reach $38,000 last week but didn’t succeed. Now, Bitcoin is moving sideways.
Right now, investors were thinking about when BTC, which went up last week, would go up again, when Bitfinex released a new report.
In the latest Bitfinex Alpha Report, experts said that the price of BTC is changing a lot and advised investors to be cautious when making decisions about cryptocurrency.
Bitfinex experts think that Bitcoin might stop going up to $38,000 for a bit. They looked at the data and think it could go down to $31,000.
Experts say the most important thing to look at for understanding BTC’s price changes is the Short-Term Holders’ Realized Price (STH RP). This shows the average price that short-term investors bought BTC for.
“Even at Bitcoin’s current levels, the average purchase price for short-term holders (Short-Term Holders’ Realized Price (STH RP)) stands at approximately $30,380.
This difference between the STH RP and the current market price has reached its most significant level since April 2022.
At this point, when looking at historical data, such a movement of STH RP on a monthly basis shows that caution is needed.
Historically, when there is a $2000 monthly change in STH RP, a negative change is observed in the Long-Term Holders’ Realized Price (LTH RP), which reflects the average purchase price of long-term holders.
The combination of positive monthly change in STH RP and negative change in LTH RP suggests that BTC price has reached a local top, and Bitcoin is expected to experience a pullback to test the STH RP level of $30,380.
In this context, while STH RP is hovering around $30,380, BTC may return to the range of $30,000 to $31,000.”
Bitcoin continues to trade at $36,570 at the time of writing.
*This is not investment advice.