ARK Invest warns of bearish signals for Bitcoin despite stable prices

Despite the stability of Bitcoin's price, a report from #ArkInvest indicates that Bitcoin's on-chain momentum is showing bearish signs. Capital inflows are declining, and the number of new buyers entering the market in Q2 is weakening.

Negative and Positive Signals

Specifically, the market value to real value (MVRV) ratio of Bitcoin is currently nearing the 2-year moving average, differing from the previous positive momentum. Bitcoin has not been able to reach new highs since May.

However, there are positive highlights:

The number of long-term holders of $BTC has reached its highest level in the past 15 years, accounting for 74% of the total supply (held by addresses active for over 155 days). This indicates increasing market confidence in Bitcoin's role as a store of value.

Bitcoin's dominance ratio in the crypto market has risen to 65% – the first time since late 2020, while altcoins are underperforming.

Bitcoin is trading at around $109,000, significantly above the key support range of $96,000 to $99,000, suggesting that many short-term investors are in profit.

ARK Invest also notes that inflation is lower than expected, which could lead the Federal Reserve to cut interest rates sooner. Although Bitcoin price volatility is at a historical low, analysts at QCP Capital warn to "be cautious of the calm," as the second half of this year could see many "fireworks." #anhbacong