The bullish trend of the Bitcoin price has tapered off in recent weeks, casting doubt on the progression of the crypto bull cycle. A flash crash on Friday, April 12, led to a drop in the premier cryptocurrency’s value from \(70,000 to below \)67,000.
This decline highlights the challenge faced by Bitcoin in reclaiming its recent peak of $73,737, reached in mid-March. Santiment, an on-chain analytics platform, has identified a key Bitcoin metric that could indicate a revival of the bull market.
Potential Resumption of Bitcoin Bull Run Linked to This Metric
Santiment, a blockchain intelligence firm, recently shared insights on the current cycle and Bitcoin’s price performance. The Mean Dollar Invested Age metric was singled out as a crucial indicator to monitor while the market leader consolidates.
The Mean Dollar Invested Age metric measures the average age of investment in an asset held in the same wallet. An uptrend in this metric signifies stagnant investments and the hoarding of old coins in wallets.
Conversely, a downtrend in the Mean Dollar Invested Age metric indicates a return of investments into circulation, suggesting heightened network activity.
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Historically, Bitcoin has shown a declining Mean Dollar Invested Age line during previous bull cycles. Santiment observed a similar trend for the premier cryptocurrency in the ongoing bull run that began in late October 2023.
Despite expectations surrounding the impending halving event, where miners’ rewards will halve, Bitcoin’s Mean Dollar Invested Age line has remained flat in recent weeks. This is particularly surprising given the optimistic sentiment prevailing among investors for Bitcoin in 2024.
Investors are advised to monitor the Bitcoin Mean Dollar Invested Age metric, as a continuation of the bull run is probable if the BTC’s Mean Dollar Invested Age line resumes its decline. This would suggest that major stakeholders, such as whales, are once again circulating their coins.
BTC Price Overview
At the time of writing, Bitcoin is valued at approximately $66,548, reflecting a significant 6% decrease in the past 24 hours.