The price of Bitcoin and the general cryptocurrency market received a major boost over the past week as geopolitical tensions in the Middle East appear to have reached a temporary halt. The leading cryptocurrency has maintained relatively strong momentum since breaking through the psychological resistance of $70,000 on Tuesday, April 7.
Now, this sudden resurgence has sparked discussions among cryptocurrencies about whether the price of Bitcoin has already reached a structural bottom. The world’s largest cryptocurrency could still experience “one last dump” before this bearish phase ends, according to a prominent cryptocurrency founder.
On-Chain Signal Indicates Further BTC Drop
In an April 10 post on Platform This projection is based on an on-chain overview which suggests that the price of BTC tends to move towards a cycle bottom when the investor’s price falls below the price realized by the long-term holder (LTH).
Wedson explained the relevance of this view of the chain and why it appears before a large price and the resulting accumulation of coins. According to the on-chain data expert, Investor Price is a metric that measures the average cost of economically active coins and, when it falls below the LTH realized price, suggests that fresher capital has been flowing in at lower prices than those paid by long-term investors.
Wedson wrote on X:
This usually happens after distribution phases, when demand weakens and marginal buyers withdraw. Long-term holders generally sell less when the price approaches or falls below their cost basis.
Source: @joao_wedson on X
As shown in the chart above, the realized price of LTH appears to exceed the investor’s price, indicating a transition phase in which weaker hands exit while stronger hands gradually absorb supply. It should be noted, however, that this absorption is slower than expected, which explains why the price of Bitcoin is often in an intermediate accumulation range.
Additionally, with the price to investors lower than the realized price of LTH, market surges tend to fade quickly as they meet supply (selling pressure) from investors looking to exit at their equilibrium price. This phenomenon limits the current upside potential of the leading cryptocurrency, reinforcing possible downward lateral price movements until a new demand impulse appears.
Finally, Wedson noted that Bitcoin’s current price structure historically aligns with mid-cycle resets rather than final lows, reflecting a market “digesting” previous excesses, rebalancing cost bases, and moving coins to more patient investors. “The environment favors time-based accumulation rather than momentum-driven expansion,” the Alphractal founder wrote.
Bitcoin Price at a Glance
At the time of writing, BTC price sits just above the $73,100 mark, reflecting a nearly 2% rise over the past day.
The price of BTC on the daily timeframe | Source: BTCUSDT chart on TradingView
Featured image from iStock, chart from TradingView
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