On the other hand, when the Long-Term Realized Cap Impulse metric is negative, it implies that long-term holders are offloading their coins at prices lower than their cost bases. This is usually seen in late bull cycles and early bear markets, where long-term investors are distributing their assets.
Furthermore, the Long-Term Realized Cap Impulse indicator offers insights into Bitcoin’s supply and demand dynamics, highlighting major support and resistance zones. As shown in the chart provided by Alphractal, the Bitcoin price is at a critical point marked by a horizontal line known as the indecision level.
However, Alphractal attached a historical relevance to this level, noting that the Long-Term Realized Cap Impulse metric was rejected at the indecision zone just before the COVID-19 dump in March 2020. If historical precedent is anything to go by, investors might want to watch out for any rejection around this level, which may trigger a significant sell-off.
As of this writing, the price of BTC sits around $103,713, reflecting a mere 0.6% increase in the past 24 hours.
