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5 hour ago
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BEARISH 📉 : Bitcoin indicators signal weak demand and liquidity constraints

Bitcoin's market cycles are influenced by liquidity, investor behavior, and macroeconomic forces. A new high-precision metric is helping identify fundamental shifts in BTC's market dynamics.

Key Insights from the Bitcoin Realized Cap Impulse

  • The Bitcoin Realized Cap impulse identifies structural changes in BTC.
  • When the impulse turns negative, it indicates a fear-driven phase in the market due to capital flow.
  • Despite BTC ETFs and institutional accumulation, incoming capital currently can't absorb excess supply, leading to price weaknesses.
  • A shift requires significantly higher accumulation to reverse this trend.
  • Long-term holders control a large share of BTC, influencing major market cycles.

Current Limitations on Bitcoin's Short-Term Growth

  • The Bitcoin Z-Score heatmap aggregates data on demand, liquidity, and valuation levels.
  • This heatmap shows key indicators remain negative, indicating no recovery in the current environment.
  • Weak demand and constrained liquidity prevent BTC from achieving short-term highs.

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