Bitcoin at “Make or Break Moment” as $46K Support Comes Under Scrutiny: ARK
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Ark invests cautions “make or break moment” for the Bitcoin price as it faces crucial support levels weighed down by stacking risk factors.
In the latest monthly report, US investment management firm ARK Invest scrutinized Bitcoin’s “most important price supports” of $52,000 and $46,000.
The report notes that Bitcoin price movement no longer respects classic bull market support levels, such as the 200-day moving average and short-term holder cost basis, defined as $63,693 and $63,245, respectively.
Mean reversion levels suggest that the on-chain reversion level near $46,000 could serve as a last chance, with ARK defining its overall stance as “bearish.”
“Currently, bitcoin’s most important price supports are at $52,000 and $46,000, the latter confirmed by its on-chain mean, the red line on the chart,” accompanying commentary confirms.
A recent Glassnode report pointed to a potential “source of risk” as short-term Bitcoin holders grapple with unrealized losses, raising concerns of potential sell-off pressure.
Similarly, ARK Invest noted that institutional investors also face unrealized losses. Holders of US spot Bitcoin exchange-traded funds (ETFs) could risk being in the red eight months after their launch.
The report noted that at the end of August, the estimated cost basis of US spot ETF participants was higher than bitcoin’s price, something which spikes concerns that “the average ETF investor may be at a loss.”
Meanwhile, the report also noted “broad macroeconomic weakness” as a risk factor, citing declines in the dollar, employment, and
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