Bitcoin (BTC-USD) is at a critical crossroads as it tests vital support levels, according to a recent report from ARK Invest. The cryptocurrency ended August with a nearly 9% decline and is now grappling with two key support thresholds: $52,000 and the more crucial $46,000. ARK Invest describes this period as a “make-or-break moment,” highlighting that “currently, Bitcoin’s most important price supports are at $52,000 and $46,000,” with the latter being especially pivotal for maintaining its bullish momentum.
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Institutional Investors Feel the Pinch
The struggle isn’t limited to casual holders; institutional investors in U.S spot Bitcoin ETFs are also feeling the impact. According to ARK Invest, many of these investors are facing losses, as their average cost basis exceeds Bitcoin’s current price, indicating that they may be underwater on their investments.
Glimmers of Hope Amidst Gloom
Despite the bearish outlook, there are some positive indicators. The MVRV Z-score, which ARK Invest highlights, measures Bitcoin’s market cap relative to its realized value. It remains in “bull market territory” with a reading of 1.6 compared to its mean of 1.42. This suggests that despite current challenges, Bitcoin could still rebound if it can hold the important $46,000 support level.
At the time of writing, Bitcoin is sitting at $58,164.64.
