"Bitcoin Price Not Yet Bottomed Out" Cryptocurrency Founder Warns of One Last Sell-off

▲ Bitcoin (BTC) Crash/ChatGPT generated image ©

Bitcoin (BTC), the leading cryptocurrency, has reclaimed the $70,000 mark and is continuing its short-term rally as geopolitical tensions from the Middle East temporarily ease. However, a weighty warning from an expert about a potential final large-scale sell-off that could shake the market before a true bottom is formed has drawn the attention of investors.

According to cryptocurrency media Bitcoinist on April 12 (local time), Joao Wedson, CEO of virtual asset analysis platform Alphractal, revealed new on-chain indicators via social media suggesting that Bitcoin's price may face further downward pressure. He highlighted the phenomenon where "Investor Price," which represents the average cost of economically actively traded coins, falls below the "Long-Term Holder Realized Price."

CEO Wedson explained that this indicator inversion typically occurs immediately after a distribution phase, where demand weakens and new buying interest shrinks. When the Long-Term Holder Realized Price surpasses the Investor Price, weak short-term investors cut their losses and exit the market, while financially strong long-term investors gradually absorb those volumes, leading to a change of hands. However, he analyzed that the current market's absorption rate is slower than expected, trapping Bitcoin in a tedious intermediate accumulation zone.

Particularly, when the Investor Price is below the Long-Term Holder Realized Price, even a slight price rebound tends to be met with a large volume of sell orders from investors looking to break even. This quickly extinguishes upward momentum, and unless new and strong demand explosively enters the market, the price is likely to consolidate sideways tediously or decline further for the time being.

Ultimately, his assessment is that the current Bitcoin price structure is not a perfect final bottom but rather aligns with a mid-cycle reset phase, digesting past bubbles and readjusting investors' entry costs. This means that the current environment calls for calm accumulation over a long period rather than chasing explosive price increases. Meanwhile, Bitcoin has risen by approximately 2% over the past day, precariously balancing above the $73,100 mark.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*