Bitcoin Demand Wanes, Eyes Set on $71,300 Support Level
Bitcoin's demand has weakened, sparking warning signals that the cryptocurrency may drop towards $71,300. According to Glassnode, the next key cost basis zone is around $71,300, with a stronger support area between $62,000 and $65,000.
The price of Bitcoin currently holds around $76,500, just below Glassnode's 'true market mean' of $76,700. This level serves as an on-chain average cost basis and has helped limit declines, but demand indicators have not improved alongside it.
On Sept. 17, CryptoSlate reported that Bitcoin's realized market capitalisation posted its first daily decline in 28 days, while spot bitcoin exchange-traded funds recorded net outflows for a second straight day on Sept. 15 and 16.
Glassnode pointed out that the recent decline in realized market capitalisation and net ETF outflows point to an opposite direction for Bitcoin's price movement. To regain its previous trading range, Bitcoin would need to post two straight daily closes above $76,700 and see a return of growth in realized market capitalisation.