Bitcoin climbs, but some underlying signals are worrying. In particular, we refer to Bitcoin Macro Index which displays a downward divergence. Should we fear a shortness of breath? Decryption of an indicator that could change everything!
Bitcoin climbs, but the key indicator drops
The price of the BTC is silent. However, a discreet signal calls into question this euphoria. This is the Bitcoin Macro Indexdesigned by Capriole in 2022. The latter alerts on a possible trend reversal.
Good to know:
Unlike other models, this index excludes the BTC price. It is based only on on-chain and macroeconomic data, analyzed via automatic learning.
Since the end of 2023, the Bitcoin Macro Index has been tracing decreasing peaks even though the flagship cryptocurrency has recorded highest successive. A downward divergence sets up. Observed in previous cycles, this phenomenon suggests that the market may have reached a long -term peak.
According to the founder of Goat Charles Edwards, this signal is not good. He even goes so far as to say that the Bitcoin course will reposition if the index becomes positive again.
Should we believe in a market reversal?
Other indicators strengthen this caution. Cryptoquant evokes for example several metrics currently in turbulence zone:
- the Market Value to Realized Value (MVRV);
- the net unspent profit/loss (nupl);
- The inter-bourse flow (IFP).
The latter has turned red since February. To reverse this trend, the IFP should go back above its mobile average over 90 days.
Despite these signals, nothing indicates, however, for the moment overheating or top of the cycle. The market therefore remains uncertain, shared between an enthusiasm fueled by the Bitcoin Spot ETF and prudence dictated by the fundamentals.
Crypto investors now have an interest in closely scrutinizing Bitcoin Macro Index. If he straightens up, the upward dynamics could resume. Otherwise, the spectrum of a false peak flat on $ 110,000. The time is therefore not panic, but for strategic vigilance!
Maximize your Cointribne experience with our 'Read to Earn' program! For each article you read, earn points and access exclusive rewards. Sign up now and start accumulating advantages.
