Bitcoin ($BTC) is reportedly going through a considerable momentum shift. As per the latest data from Glassnode, the trends of Bitcoin’s realized price are indicating a potential entry to a bearish phase as the overall momentum is decreasing. The blockchain analytics firm discussed the current bearish outlook of the Bitcoin market in a recent X post.
Bitcoin’s Realized Price Outlook Signifies Entry to Bearish Market Phase
The market data suggests that, in line with Bitcoin’s trend dealing with realized price, the top cryptocurrency token is likely entering a bearish phase. Additionally, an on-chain analogue to a potential “Death Cross” has reportedly emerged. This takes place parallel to a dip in Bitcoin’s thirty-day volume-weighted price below its 180-day equivalent. Based on the historical data, this type of crossover occurs before bearish trends and lasts for up to 3 to 6 months.
A “Death Cross” refers to a scenario in which a short-term moving average drops lower than a long-term moving average. This highlights a wider downward momentum. Particularly, in Bitcoin’s case, an analogous effect is taking place in the metrics of the realized price of Bitcoin. These metrics gauge the short-term holders going through huge financial stress. It is a pattern that normally follows the wider market downturns.
On-Chain ‘Death Cross’ Displays Cautionary Sign Amid Potentially Cooling Down Momentum
Although the historical trends offer no guarantee about the upcoming market movements, the on-chain Death Cross presents a cautionary indication about Bitcoin’s market scenario. According to Glassnode, Bitcoin’s realized price movements point toward a cooling market momentum. This makes it critical for market members to stay vigilant and evaluate their strategies for risk management. Overall, the short-term investors an traders may require to exercise calmness while Bitcoin overcomes this phase of likely weakness.
