Based

Flow

Bitcoin

when

Status

<h2 id="key-points">Key Points</h2>
<ul>
 <li>Bitcoin has seen a drop below its 200-day moving average, indicating a potential further decline.</li>
 <li>Market indicators suggest bearish sentiment among long-term investors and less capital inflow.</li>
</ul>
Bitcoin, often referred to as <a href="https://coineagle.com/price/bitcoin/" rel="noopener noreferrer nofollow">BTC</a>, has shown extreme volatility in recent months.
After reaching a local high of $70016 in July, it has struggled to maintain an upward trajectory.
Despite attempts to reverse the trend over the past week, the momentum has not been sustained.
<h2 id="current-market-status">Current Market Status</h2>
At the time of writing, BTC was trading at $58093, marking a 0.40% decline over the past day.
Similarly, the cryptocurrency’s trading volume fell by 19.90% to $29.7 billion in the past 24 hours.
This market indecision has led market analysts to predict a further decline before a reversal.
Crypto analyst Ali Martinez suggests a drop to BTC’s realized price of $31500, based on its 200-day moving average.
<h2 id="market-sentiment-and-historical-context">Market Sentiment and Historical Context</h2>
When Bitcoin trades above its 200-day moving average, it typically indicates strong returns.
However, when it falls below this level, it often signals a sustained decline.
Given that it has traded below $64000 over the past month, a potential drop to its realized price of $31500 is suggested.
Historically, when BTC falls below its 200-day moving average, prices tend to drop shortly after.
However, when BTC breaks above this trendline, prices often surge.
Other indicators also suggest a potential decline.
Bitcoin’s long-term holders SOPR has been on a declining channel since August 29th, indicating bearish sentiment among long-term investors.
Additionally, Bitcoin’s Fund Flow Ratio has declined over the past month, suggesting less confidence among investors.
Based on current market sentiment, BTC is positioned to decline to $54147 in the short term.
However, a breakout from this trendline could push prices up to $64727.

Examining Potential Bitcoin Value Decline to $31K: What to Watch Out For

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CoinEagle.com

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