While Bitcoin failed in its attempt at $38,000 last week, BTC continues its horizontal movements.
At this point, while investors were wondering when BTC, which had a nice rise last week, would rise again, a new report came from Bitfinex.
In the latest issue of the Bitfinex Alpha Report, analysts stated that BTC has entered a high volatility environment and warned investors to be careful in their crypto strategies.
Stating that at this point, Bitcoin may take a break from its rise to $ 38,000 for a while, Bitfinex analysts said that on-chain data indicates a decline and that BTC may fall to the $ 31,000 range.
Analysts stated that the key to understanding BTC's price movements here is the Short-Term Holders' Realized Price (STH RP), which shows the average purchase price of short-term investors.
“Even at Bitcoin's current levels, the average purchase price for short-term holders (Short-Term Holders' Realized Price (STH RP)) stands at approximately $30,380.
This difference between the STH RP and the current market price has reached its most significant level since April 2022.
At this point, when looking at historical data, such a movement of STH RP on a monthly basis shows that caution is needed.
Historically, when there is a $2000 monthly change in STH RP, a negative change is observed in the Long-Term Holders' Realized Price (LTH RP), which reflects the average purchase price of long-term holders.
The combination of positive monthly change in STH RP and negative change in LTH RP suggests that BTC price has reached a local top, and Bitcoin is expected to experience a pullback to test the STH RP level of $30,380.
In this context, while STH RP is hovering around $30,380, BTC may return to the range of $30,000 to $31,000.”
Bitcoin continues to trade at $36,570 at the time of writing.
*This is not investment advice.
