Bitcoin Price Rebounds From Robust Support Level
19 Apr, 2024 ● Coin news
The recent series of price declines for Bitcoin might be nearing an end as traders find themselves with minimal profit margins, suggesting a decrease in selling pressure.
Julio Moreno, head of research at CryptoQuant, indicated that a crucial turning point might be at hand for Bitcoin, based on his analysis posted on X (formerly Twitter) on April 18.
According to CryptoQuant data, Bitcoin traders have reached a breakeven point with exchange holdings priced around $60,000. Moreno highlighted that the absence of unrealized profit margins—currently at "basically zero"—could imply a reduction in selling activities by traders.
The analysis provided by Moreno includes a chart that shows the profit and loss status for short-term holders (STHs)—those who have held Bitcoin for 155 days or less.
This group appears to have exhausted their profitable options, which could lead them to hold off on selling to avoid incurring losses.
Moreno pointed out that the traders' realized price, represented by a pink line on the chart, has historically provided support for Bitcoin prices during bull markets, and it currently sits at approximately $60,000.
Despite recent price drops, Bitcoin has only briefly dipped below this level since reaching new all-time highs in March.
Retracements following new peaks are typical in the cryptocurrency market, as observed by Cointelegraph.
The anticipation of a correction was heightened by the recent block subsidy halving, which usually stirs market expectations.
Historically, returns to the STHs’ realized price have often signaled market bottoms, supporting prices consistently since the end of the 2022 bear market, except for a brief period in August last year.
Bitcoin experienced a relief rally on April 18, climbing to $64,182 on Bitstamp, as reported by TradingView data.
Rekt Capital, a popular trader and analyst, described the situation as nearing "bargain-buying territory," noting the depth and duration of the current pullback compared to previous cycles.
This pullback, being 18% deep and lasting only ten days so far, contrasts with longer and deeper retracements in past cycles.
To gain confidence in a potential full recovery, fellow trader Skew emphasized the need for more evidence of spot demand, indicating that while the immediate pressure might be easing, a more robust signal of market sentiment is necessary for a sustained upward trend.
Sources:
https://cointelegraph.com/news/btc-price-bounces-support-2023-bull-market
https://cryptoquant.com/community/dashboard/651fe2770b585c16101f9a64
https://www.tradingview.com/symbols/BTCGBP/?exchange=BINANCE
