CryptoPotato
CryptoPotato
  • Crypto News
  • Margin Trading
  • Guides
    • Bitcoin & Crypto Guides 101
    • Bitcoin For Beginners
    • Editorials
  • DeFi & NFT
  • Buy
  • Language
    • Spanish
    • Turkish
    • German
    • Bulgarian
  • Crypto News
  • Bitcoin For Beginners
  • Cryptocurrency Guides 101
  • Editorials
  • Bitcoin & Crypto Margin Trading
  • DeFi & NFT News
  • Bitcoin Price Analysis
  • Ethereum (ETH) Price Analysis
  • Ripple (XRP) Price Analysis
  • Market Updates
  • Interviews
  • Buy Bitcoin with Card
  • CryptoPotato Spanish
  • CryptoPotato Turkey
  • CryptoPotato Germany
  • CryptoPotato Bulgaria
  • Market Updates
  • BTC Analysis
  • ETH Analysis
  • XRP Analysis
  • Interviews
CryptoPotato
CryptoPotato
  • Crypto News
  • Margin Trading
  • Guides
    • Bitcoin & Crypto Guides 101
    • Bitcoin For Beginners
    • Editorials
  • DeFi & NFT
  • Buy
  • Language
    • Spanish
    • Turkish
    • German
    • Bulgarian
  • Crypto News
  • Bitcoin For Beginners
  • Cryptocurrency Guides 101
  • Editorials
  • Bitcoin & Crypto Margin Trading
  • DeFi & NFT News
  • Bitcoin Price Analysis
  • Ethereum (ETH) Price Analysis
  • Ripple (XRP) Price Analysis
  • Market Updates
  • Interviews
  • Buy Bitcoin with Card
  • CryptoPotato Spanish
  • CryptoPotato Turkey
  • CryptoPotato Germany
  • CryptoPotato Bulgaria
Home » Crypto News » These Metrics Suggest Bitcoin Faces Risk of Further Decline: CryptoQuant

These Metrics Suggest Bitcoin Faces Risk of Further Decline: CryptoQuant

Author: Mandy Williams

Last Updated Aug 10, 2024 @ 08:37

Futures market metrics and declining bitcoin demand from traders indicate that BTC could extend this correction and trigger more bloodshed.

Getting your audio player ready...

Bitcoin’s latest price correction has the asset hovering around key support levels that could mean more doom for the market. CryptoQuant’s analysts say the cryptocurrency has pierced a key level acting as resistance in this bull cycle, and on-chain metrics are not showing signs of a recovery soon.

According to the weekly report, BTC has fallen below the traders’ realized price lower band for the first time in this bull run. This level has acted as support in this cycle, and if the support fails, the cryptocurrency risks plummeting to the $40,000 level, which is the traders’ realized price minimum band.

However, analysts think there is a low chance that the support would fail because that would imply that the market has entered a bear cycle.

A Risk of Further Correction

Futures market metrics and declining bitcoin demand from traders indicate that BTC could extend this correction and trigger more bloodshed. Trading activity in futures markets has been dominated by selling and shorting transactions, and investors are more willing to open short positions than long positions, as seen in funding rates becoming negative.

Bitcoin traders have been reducing their holdings since late May, and the demand for BTC from this cohort of market participants has continued to decline.

“Traders increased their holdings from October 2023 to early May 2024, when Bitcoin rallied towards the $70K mark. We would need to see a recovery in traders’ Bitcoin demand for price to also recover,” CryptoQuant stated.

No Positive Momentum From Traders

The plunge in bitcoin’s price also dragged traders’ profit margins to the most negative level since November 2022 when the bankrupt crypto exchange FTX collapsed; hence, there is no positive momentum from them. Their on-chain profit margin currently sits at 18%; positive price momentum comes when the profit margin rises above zero and stays higher than its 30-day moving average.

From a valuation perspective, bitcoin’s market value to realized value (MVRV) ratio has plunged below its 365-day moving average. This move is historically aligned with an extension of price decline or the onset of a bear market.

“Investors should be monitoring these types of valuation metrics to assess the possibility of a price bounce (if the MVRV crosses above its 365-day moving average again) or a further correction,” the analysts added.

SPECIAL OFFER (Sponsored)
Binance Free $600 (CryptoPotato Exclusive): Use this link to register a new account and receive $600 exclusive welcome offer on Binance (full details).

LIMITED OFFER for CryptoPotato readers at Bybit: Use this link to register and open a $500 FREE position on any coin!

Tags: Bitcoin Bitcoin (BTC) Price
Enjoy reading? Share with your friends
Facebook Twitter LinkedIn Telegram

About The Author

Mandy Williams
More posts by this author

Mandy Williams is a full-time reporter at CryptoPotato. She joined the cryptocurrency space in early 2017 during her search for financial freedom and has remained devoted to the industry.
Contact Mandy: Twitter

Join Our Community

FacebookX YouTubeTelegram


Editorials
How to Farm Airdrops on Hyperliquid (HYPE): The Complete Guide to Free Money This Crypto Cycle

How to Farm Airdrops on Hyperliquid (HYPE): The Complete Guide to Free Money This Crypto Cycle

How to Trade on Hyperliquid: The Ultimate Guide (Step-by-Step Walkthrough)

How to Trade on Hyperliquid: The Ultimate Guide (Step-by-Step Walkthrough)

12 Best Meme Coins to Watch in July 2025

12 Best Meme Coins to Watch in July 2025

7 Best Meme Coin Presales to Watch in July 2025

7 Best Meme Coin Presales to Watch in July 2025

Toobit Review 2025: Is Toobit a Safe Crypto Exchange?

Toobit Review 2025: Is Toobit a Safe Crypto Exchange?

Hyperliquid Bridge: How to Bridge USDC to Hyperliquid

Hyperliquid Bridge: How to Bridge USDC to Hyperliquid

10 Best Crypto Presales to Consider in July 2025

10 Best Crypto Presales to Consider in July 2025

Join Our Newsletter
Become a CryptoPotato VIP
One Weekly Email Can Change Your Crypto Life.
Sign-up FREE to receive our extended weekly market update and coin analysis report
We NEVER send spam. You can unsubscribe at any time.
Invalid email address
Thanks for subscribing!
Footer Logo
About
Advertise on CryptoPotato
About Us | Contact Us | Careers
Editorial Policy
Terms of service | Privacy Policy | GDPR
More Sections
IEO List | Evaluations
Airdrops
Scholarship
Disclaimer
Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. Full disclaimer
© Copyright CryptoPotato 2016 - 2025
Scroll to top
One Daily Email Can Change Your Crypto Life.

Sign-up FREE to receive our extended daily market update and coin analysis report

We never send SPAM. You can unsubscribe at any moment
Invalid email address
Thanks for subscribing!