Bitcoin Faces Bear Market Signals as Realized Cap Declines

Bitcoin (BTC) continues to decline, with critical factors influencing its market trajectory highlighted by industry expert Ki Young Ju, CEO of CryptoQuant.

Key Insights

The current Bitcoin bull cycle may be ending, based on the Realized Cap metric, which measures capital entering the BTC market through on-chain activity.
Realized Cap is calculated by averaging wallet costs and multiplying by the amount of BTC held, reflecting actual capital versus market capitalization based on trading price.
Low sell pressure allows modest buys to significantly impact prices; this was evident when MicroStrategy acquired Bitcoin via convertible bonds.

Current Market Conditions

Bitcoin has dropped below $80,000, facing high sell pressure that hinders price movements despite large trading volumes.
Ju notes an increase in Realized Cap without corresponding market cap appreciation indicates a bearish trend.
Historical data suggests significant market reversals take at least six months, making short-term rallies unlikely.

Resistance Levels

Expert Ali Martinez identifies a resistance cluster at $87,000, where key moving averages converge.
Critical resistance points for upward momentum are at $85,470 and $92,950, with vital support at $80,450. Failure to hold this level may lead to further declines.

As of now, Bitcoin trades at $78,379, down 6% on Sunday.