• Bitcoin drops within 9% of realized price 
• Bitcoin bottom delayed?

Over the past weeks, Bitcoin has declined significantly in price, putting the market in fear as many retail and institutional traders begin to take extreme caution.

While Bitcoin's downtrend had persisted, the asset saw a major decline during the last week when it plunged to an extreme low of $59,000. 

Bitcoin drops within 9% of realized price 

This price movement flashed a potential bottom signal where traders showed optimism for a new market phase. However, recent on-chain data from Cryptoquant suggests that Bitcoin's bottom may be farther than expected.

While the prolonged price downturn has seen Bitcoin trade within just 9% of its realized price of $53,600, analysts had predicted that Bitcoin was significantly close to bottoming out, which marks the end of previous bear market cycles.

This has raised the hopes of many traders as historical data shows that Bitcoin prices have previously bottomed near or slightly below the realized price.

Bitcoin bottom delayed?

While Bitcoin's price movement confirms the asset being cheap and close to its bottom, which will serve as a potentially enticing entry point, Bitcoin's on-chain demand has fallen significantly, painting a much less optimistic picture.

Per the data, the total demand for Bitcoin dropped by 652,000 BTC last week, marking the sharpest contraction since January 2022, and it has continued to fall.

With such a significant decline in Bitcoin's demand, it appears that both speculative futures activity and spot demand from ETFs have become increasingly weak, suggesting that market participants are hesitating to step in even at such cheap prices.

This metric tends to put Bitcoin on the downside for a longer term instead of preparing for its next leg up, which is expected to conclude the bearish market phase.

免责声明：本文章仅代表作者个人观点，不代表本平台的立场和观点。本文章仅供信息分享，不构成对任何人的任何投资建议。用户与作者之间的任何争议，与本平台无关。如网页中刊载的文章或图片涉及侵权，请提供相关的权利证明和身份证明发送邮件到support@aicoin.com，本平台相关工作人员将会进行核查。