Over the past few weeks, the price of Bitcoin has lost its upward momentum, raising doubts about the continuation of the cryptocurrency bull cycle. The leading cryptocurrency saw a flash crash on Friday, April 12, which saw its value plummeting from above $70,000 to around $67,000.
This most recent decline highlights how difficult it has been for the price of Bitcoin to recover from its recent all-time high of $73,737, which was reached in mid-March. Santiment, an on-chain analytics platform, has discovered a specific Bitcoin indicator that might indicate the start of the next bull market.
Bitcoin's Bull Run Could Continue Should This Metric Drop
Blockchain intelligence company Santiment offered a fascinating perspective on the current cycle and the performance of the price of Bitcoin in a recent article on X. One sign to keep an eye on while the market leader moves sideways, according to the business, is the Mean Dollar Invested Age statistic.
Santiment claims that the Mean Dollar Invested Age measure measures the average age of an asset that has been kept in the same wallet. When this indicator rises, it indicates that older coins are being kept in the same wallets and that investments are becoming more stagnant.
On the other hand, a declining Mean Dollar Invested Age indicates that capital is returning to the mainstream market. Additionally, this "falling line" points to a rise in network activity.
Looking back, Bitcoin showed a declining Mean Dollar Invested Age line in the preceding bull markets. Santiment claims that during the current cryptocurrency bull run, which began in late October 2023, this has been the case for the leading cryptocurrency.
But over the last few weeks, the Mean Dollar Invested Age line for Bitcoin has been moving sideways, according to the on-chain analytics platform. With only a week to go until the much-awaited halving event, this behavior is even more startling.
The reward for miners will be cut in half as a result of the Bitcoin halving (from 6.25 BTC to 3.125 BTC). This bullish development has added to the positive prediction, held by the majority of investors, for the top cryptocurrency in 2024.
According to Santiment's most recent study, investors should watch the Bitcoin Mean Dollar Invested Age statistic. Furthermore, if the Mean Dollar Invested Age line for Bitcoin continues to decline, a sign that significant investors—such as whales—are once again putting coins into ordinary circulation, the bull run is probably going to continue.
April 2024, Cryptoniteuae