Analyst Warns Bitcoin Price May Have Reached "Peak Cycle"

Charles Edwards, founder of Capriole Investments, says multiple indicators are showing "signs of weakness" in the bitcoin price. Here are three key reasons why: 1. Long-Term Holder Inflation Approaching Threshold: Bitcoin's Long-Term Holder (LTH) inflation rate has been steadily rising, approaching the 2.0 threshold, which usually signals a high likelihood of a cycle top. The current value is 1.9, indicating increased market pressure. 2. Rising Dormancy Flow Indicator: The Dormancy Z-score has risen sharply over the past three months, indicating a higher average age for spending bitcoin. Spikes in this indicator usually signal a cycle top, which is currently similar in structure to the tops of 2017 and 2021. 3, Spike in Spending: a sudden increase in bitcoin's 7-10 year spending indicates risky territory. the increase in spending in 2024 suggests that the current cycle is progressing rapidly. Additionally, more than $9 billion in Bitcoin was transferred from addresses that have held it for more than a decade, partially attributed to Mt. Gox preparing to pay off creditors. The market is concerned that Mt. Gox will release 142,000 bitcoins (about $9 billion), which could increase selling pressure. Nonetheless, payment options for long-term holders and institutional ownership may ease this pressure.