Is Bitcoin Topping Out? This Onchain Metric Points to Worrying Weakness

Bitcoin price may be topping out, looking at on-chain data. There are now more speculators than HODLers. Will BTC price hold above $90,000?

The Bitcoin rally might be coming to an end, according to the latest Glassnode data. At press time, the world’s most valuable coin is trading at around $95,500, stable in the past 24 hours, pushing the global crypto market cap to $3.2 trillion, down 3.3% in 24 hours.

While there is hope that bulls will ward off determined sellers and successfully defend support at around the $94,000 to $95,000 zone, the series of lower lows in the past two weeks remains a concern. From the BTCUSDT chart, the coin is down 13% from all-time highs and consolidates, moving sideways as the uptrend loses momentum.

Currently, Bitcoin is stable, moving inside last week’s range, finding resistance at $100,000. Although there is no dismissing the possibility of buyers driving the coin above this psychological round number, on-chain data suggests otherwise.

BTC Price Analysis: Is Bitcoin Price On Its Last Legs?

There are signs of exhaustion, Glassnode analysts say.

In a post on X yesterday, Glassnode pointed to the Bitcoin Realized HODL Ratio (RHODL) chart. RHODL is used to gauge the balance between mid-cycle holders or those who have held the coin for between 6 and 24 months against new entrants or addresses who have held the coin for less than three months.

Historically, whenever the RHODL ratio is high, it tends to signal market bottoms. Meanwhile when it is low there are more short-term holders than diamond hands signaling the possibility of the market heating up due to high speculation.

It appears that more traders are punting looking to flip the market for quick gains. The RHODL ratio has been declining and is presently at levels analysts think mark the last stage of bull runs. Although it is not at absolute lows a dropping RHODL ratio means investors are not keen on holding but rather speculate on prices.

If this ratio continues to fall and then rebounds strongly it may point to entry of confident traders willing to HODL the market. In that event prices may print above $100K and race higher towards $110K in a buy trend continuation formation.

BTC Finds Support at $90K and $95K

Traders will therefore be watching…

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