Bitcoin Cycle Momentum Indicator Shows Signs of Reversal
- The Bitcoin Cycle Momentum indicator has returned to positive territory after eight months of bearish action.
- To confirm a reversal, the indicator needs to rise to the range of 20–30 in the coming weeks.
- Short-term holders realized average profits of up to 15% in August, exceeding the previous all-time-high average profit of about 11%.
- However, apparent demand for Bitcoin has turned negative, indicating a contraction in demand recently.
- Selling pressure from short-term holders may increase unless demand rebounds soon.
The recent shift in the Bitcoin Cycle Momentum indicator suggests potential market reversal signs after an extended downtrend. However, declining demand and significant profit-taking by short-term holders could pose challenges for sustaining upward momentum.
With short-term holders achieving profits as high as 15%, there is concern over increased selling pressure amidst weakening demand metrics. (Source)
