Is the Wild Rally on Bitcoin’s Chart Over? Analytics Company Answers by Custom Metric

Cryptocurrency analytics firm Alphractal recently published an in-depth evaluation of Bitcoin, focusing on the Realized Capitalization metric.

The firm noted that Bitcoin’s Realized Capitalization has reached the same resistance levels previously observed in 2019 and March 2024.

In his statement, Alphractal highlighted the Long-Term Realized Capital Impulse (LTRCI), a metric designed to analyze movements in capitalization over long periods. This approach provides valuable information on supply and demand dynamics, providing a more comprehensive perspective on market trends. By focusing on longer time frames, LTRCI aims to uncover patterns that may not be noticed in short-term analysis and shed light on the impact of significant capital flows on price movements.

“Long-Term Realized Capital Impulse offers an innovative approach to analyze demand from an on-chain perspective,” the company said.

Alphractal also took a look at Realized Capital Impulse, which focuses on shorter-term swings in the market. According to the firm, this metric suggests that market enthusiasm has not yet fully materialized. This could indicate that Bitcoin has experienced significant movements over the past year or that there is still potential for growth.

The firm added a cautionary note: “A decrease in this metric could negatively impact the price, while an increase indicates a more positive and volatile market outlook.”

*This is not investment advice.

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