We start December with a significant correction. With no headline, for no apparent reason. It simply falls.
The price drop doesn't seem unusual to me. We were expecting it to test those lows again. What's interesting is how it's falling.
In this Glassnode image, it is very clear where we are. The price of Bitcoin is right in the zone where several key metrics converge:
- True Market Mean (green media) - Active Realized Price (yellow media) - Short-Term Holders Cost Basis (red media)
All these averages have historically acted as support in bullish markets. Look at the previous cycles: every time the price touched these zones during a bull market, it rebounded.
Now the price is going to visit exactly those lows. To recognize its strength. If it bounces, it confirms the support. What we do not want to see is a loss of those lows.
For now, the chart speaks clearly: we are at support level.
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Bitcoin in key support zone.
We start December with a significant correction. With no headline, for no apparent reason. It simply falls.
The price drop doesn't seem unusual to me. We were expecting it to test those lows again. What's interesting is how it's falling.
In this Glassnode image, it is very clear where we are. The price of Bitcoin is right in the zone where several key metrics converge:
- True Market Mean (green media)
- Active Realized Price (yellow media)
- Short-Term Holders Cost Basis (red media)
All these averages have historically acted as support in bullish markets. Look at the previous cycles: every time the price touched these zones during a bull market, it rebounded.
Now the price is going to visit exactly those lows. To recognize its strength. If it bounces, it confirms the support. What we do not want to see is a loss of those lows.
For now, the chart speaks clearly: we are at support level.