What is the story about?
What's Happening?
Bitcoin's price dropped below the $112k level, indicating a bearish short-term outlook. The Coin Days Destroyed (CDD) metric revealed that some holders were exiting the market, while whale-driven Realized Profits added to the cautious mood. The rotation of capital from Bitcoin to Ethereum contributed to cooling spot ETF flows into BTC.
Why It's Important?
Bitcoin's price action is testing critical support levels, with the average short-term holder cost basis at $107.8k acting as a solid support level. The MVRV percentile showed no strong upward or downward signals, indicating a risk/reward balance at neutral levels. An Ethereum-led rally in Q4 appears possible, but Bitcoin's ability to keep pace remains uncertain.
What's Next?
Traders can begin to scope out the next long setup once the STH SOPR climbs back above 1, indicating strength. Monitoring exchange net outflows during the time of entry, when all three triggers align, will help the quality of the long setup. Traders must conduct their own research before trying out this strategy.
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