According to crypto analyst Murphy, Bitcoin ($BTC) is currently positioned at a pivotal technical and psychological juncture.
Murphy elaborated that the 10-Year Realized Price is a metric designed to largely eliminate the impact of Bitcoins that are either lost or have remained inactive for extended periods. This approach allows the indicator to more accurately represent Bitcoin’s “historical average transaction cost.” Essentially, it offers a clearer view of the average cost basis for $BTC that is actively traded in the market.
The analyst emphasized that the $65,000 mark acts as both a financial and psychological barrier for bullish investors. He cautioned that if this level were decisively breached downward, it could lead to an intensified bear market from the current downtrend.
Murphy also pointed out that during severe bear markets, it’s common to witness an uptick in negative sentiments and pessimistic discussions. He advised investors against making emotional decisions during these times. Discussions about potential price drops to levels like $30,000 or even $8,000 may surface; he recommended managing positions rather than engaging in verbal debates regarding such opinions.
*This should not be considered investment advice.