A new price support for bitcoin appears to be continuing the traditional bull market trend. Will the price strength of BTC be able to withstand a historically brief correction?
The urge to sell Bitcoin may lessen as a result of dealers’ profit margins reaching “virtually zero.”
Julio Moreno, head of research at on-chain analytics platform CryptoQuant, predicted a potential bottoming point in the price of Bitcoin in an analysis that was posted to X (previously Twitter) on April 18.
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A week of BTC price declines has crushed Bitcoin and cryptocurrency traders, but a major reset is about to happen.
Data from CryptoQuant indicates that traders have brought their exchange holdings back to breakeven threshold at $60,000.
Moreno summed up, saying, “Bitcoin selling pressure from traders may be declining as unrealized profit margins are basically zero now.”
Profit/loss was displayed on an accompanying chart for short-term holders (STHs), or Bitcoin companies that have owned BTC for 155 days or less.
These speculators appear to have exhausted their winning deals, indicating that a reduction in sales may be necessary in order to prevent losses.
Furthermore, Moreno said:
The pink line, or traders’ realised price, has supported prices during bull markets and is currently around $60K.
Since BTC/USD started retracing from fresh all-time highs in March, there has only been one brief dip below $60,000.
These retracements are typical when all-time highs are broken, as Cointelegraph noted. The unexpected new peak that occurred prior to this week’s block subsidy halving raised hopes for a BTC price drop.
Since the end of the 2022 bear market, returns to the realised price of STHs have been used to define bottoms on a number of occasions, and the trendline has nearly always supported the market.
BTC/USD just briefly traded below STH realised price in August of last year.
On April 18, however, Bitcoin experienced a reprieve, rising to $64,182 on Bitstamp, according to TradingView statistics.
Popular trader and analyst Rekt Capital stated on the day that “this is now a -18% deep pullback that has lasted 10 days thus far.
Depth – wise, this is very close to bargain-buying territory based on pullbacks in this cycle (up to -23% deep at most).”
Time-wise, though, this cycle’s retracement is still among the shortest – it’s currently only 10 days long. Pullbacks in the past have lasted two to three weeks, and sometimes up to two months.
More proof of spot demand, according to fellow trader Skew, is required to inspire confidence in a full-fledged rebound.
The trajectory of Bitcoin’s price sees a hesitant uptick, reflecting the cautious optimism permeating the cryptocurrency market.
With each incremental rise, investors and analysts tread carefully, mindful of the volatile nature that characterizes Bitcoin’s movements.
Speculation swirls amidst the price increases, as market participants weigh factors such as institutional adoption, regulatory developments, and macroeconomic trends.
Yet, amidst the uncertainty, a sense of resilience persists within the Bitcoin community, buoyed by a steadfast belief in the long-term potential of the digital asset.
As the price hesitantly inches upwards, observers remain vigilant, attuned to any shifts that may herald a more definitive trend in the ever-evolving landscape of Bitcoin.
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