According to Cointelegraph, US investment management firm ARK Invest warned in its latest monthly report that Bitcoin (BTC) is at a “critical moment” and faces a test of important support levels. Reports indicate that BTC’s key price levels are $52,000 and $46,000. BTC’s failure to rebound significantly after falling nearly 9% in August worries bulls.
BTC/USD no longer follows classic bull market support levels, namely the 200-day moving average and short-term holders’ cost basis, at $63,693 and $63,245, respectively. ARK Invest defines BTC’s overall stance as “bearish” and points to $46,000 as the last support opportunity.
The report also pointed out that US spot Bitcoin ETF holders face unrealized losses and the cost basis of ETF participants is higher than the BTC price. Despite the bleak market outlook, ARK believes that the BTC price retracement is in line with historical norms, with low levels of liquidation of short-term holders and favorable macroeconomic conditions.
BTC’s MVRV Z-score remains in “bull market territory,” at 1.6 at the end of August, above the average of 1.42. As of September 13, BTC/USD was trading around $58,000, down 1.9% on a monthly basis.
