Bitcoin's Realized Cap Contracts, Raises $71,300 Support Level Concern

Bitcoin's Realized Cap has contracted for the first time in a month, causing concern about demand for the cryptocurrency. On September 15 and 16, U.S. spot Bitcoin ETFs posted net outflows of $450.4 million and $295.9 million, respectively.

The next on-chain support levels identified by Glassnode are around $71,300 for short-term holders and a deeper zone at $62,000-$65,000. A recovery in the market requires two daily closes above $76,700 with renewed Realized Cap growth; failure to do so would leave downside risk toward $71,300.

The recent decline in Realized Cap indicates that coins are being repriced lower on-chain, not an equivalent amount of cash leaving the blockchain. This suggests that investors are selling their holdings at a lower price than they were previously valued at.