Title: Bitcoin On-Chain Health Remains Positive, But Key Support Levels Crucial for Bullish Momentum
In its latest monthly report, ARK Invest highlights the importance of maintaining two crucial support levels for Bitcoin (BTC) to sustain its bullish uptrend despite positive on-chain health metrics.
The report notes that Bitcoin’s price experienced a slight decline in August 2024, falling by 8.7% to $58,972. The inability to surpass its 200-day moving average makes the support levels at $52,000 and $46,000 critical for the digital asset’s bullish momentum.
Despite facing temporary headwinds, Bitcoin’s on-chain health remains ‘net positive,’ with metrics such as network security, network usage, and holder behavior all signaling bullish sentiment. Long-term holder supply has increased by 3.3% month-over-month and locked supply has also seen growth in both monthly and yearly terms.
While Bitcoin’s transaction volume has decreased, a bullish on-chain indicator, its overall positive metrics overshadow this bearish signal. Additionally, the short-to-long liquidation dominance metric is at its lowest since Q2 2023, further supporting a bullish stance on Bitcoin.
The report also sheds light on the situation of Bitcoin ETF investors, with the estimated cost basis of US spot ETF participants higher than BTC’s price, indicating potential losses for the average investor. Despite this, Bitcoin ETFs have garnered significant interest from institutional investors, with major Wall Street players like Goldman Sachs and Morgan Stanley investing heavily in these products.
At the time of writing, Bitcoin is trading at $57,836, showing a minimal 0.2% increase in the past 24 hours, with a total market cap of $1.14 trillion. As Bitcoin continues to navigate market fluctuations, maintaining key support levels will be crucial for sustaining its bullish momentum in the long term.
