BofA’s Hartnett says concentrated U.S. stock returns are likely to persist
U.Today - Bitcoin has recently experienced volatility in its price trajectory, finding it difficult to maintain momentum above $90,000. Despite a long history of growth, new data points to the cryptocurrency possibly reaching a turning point. Warning indicators are being displayed by the 1460-day running ROI chart, which is on a downward trajectory that may have a major impact on the future movement of the price of Bitcoin.
The asset was pushed back toward the 100-day moving average after Bitcoin’s recent attempt to break through the $90,000 resistance level was rejected. The declining trading volume indicates that there is not much buying pressure, indicating that both institutional and individual investors are pulling back. BTC may experience more downward pressure toward the $85,000 mark if it is unable to recover important resistance levels around $92,500. An unsettling image is presented by the Bitcoin ROI chart.
At 1.558, the long-term return on investment for Bitcoin has been steadily declining. For long-term holders, this indicates declining profitability, a metric that has historically affected market sentiment. Although previous cycles have experienced strong recoveries following low ROI values, there is still concern that Bitcoin is getting closer to a point where it might find it difficult to generate sizable returns in comparison to earlier cycles.
Investor enthusiasm may be tempered if Bitcoin’s return on investment (ROI) approaches 1.0, which could signal a breakeven point where long-term holders are neither making nor losing money. Nonetheless, prior to significant price spikes, such low ROI levels have indicated accumulation points. A reversal toward $100,000 is still possible if Bitcoin is able to hold resistance above $85,000 and breach significant resistance at $90,000.