Alpha Price is an innovative metric developed by Joao Wedson that considers the average price of all BTC in circulation, along with Realized Cap and Average Cap in its calculation. It stands out by identifying overbought conditions with an impressive level for Bitcoin's price, as it is dynamic according to on-chain sentiment. This makes it excellent for selling at high prices and buying back at low prices without missing the entire bull cycle.

Additionally, we have added division factors to identify support levels, thus creating a support and resistance channel.

Throughout Bitcoin's history, when the price reached the upper line, strong resistance was observed, while the lower lines sustained local supports with good accuracy, as they are dynamic according to blockchain data.

In the latest drop in early August, the Alpha 3 line supported the price, and currently, the main resistance above is at $65,980 and below at $54,900. Therefore, surpassing these values could either restore confidence in the prices or lead us into a bearish zone.

Below are the values of each line and how we can consider each region in terms of investor sentiment:

Alpha Price = $93,100 (Return of euphoria and profit on the blockchain - Possible top!)
Alpha Price 2 = $65,980 (New resistance - Surpassing is very bullish)
Alpha Price 3 = $54,900 (Last support before a new dump)
Alpha Price 4 = $47,130 (Next support level in an attempt to recover the market)
Alpha Price 5 = $41,240 (Last support of the bull market)
Alpha Price 6 = $32,900 (Start of a new bear market phase)
Alpha Price 7 = $27,420 (Panic - Return to accumulation region)
Alpha Price 8 = $21,700 (Capitulation - Zone of loss for most investors)
Alpha Price 9 = $16,500 (Despondency - Extreme fear)
Alpha Price 10 = $13,750 (Depression - New bearish discovery)

These values change daily, as investors may accumulate more Bitcoin or simply distribute their reserves, influencing the metric values.

https://x.com/Alphractal