This change indicates that the price of BTC is losing support relative to on-chain value. Each time there is a drop below the level 0, Bitcoin has repeatedly been unable to build real strength despite multiple attempts to push higher and short-term price bounces. As a result, the flagship asset continues to move sideways, ultimately allowing the extension of the downward trend for months.
BTC remains in a fragile state, and this latest decline in this crucial fundamental metric raises concerns about its short-term resiliency and whether the market is poised to enter a cooling phase following months of volatile price action. How the market reactions at this point will play a role in determining the crypto king’s next major trajectory.
