Key Points
- Bitcoin’s price has struggled to maintain levels above $100k, leading to concerns about market confidence.
- Long-term holders continue to support the market, while short-term holders experience losses or low profits.
Bitcoin [BTC] has had a rough week, failing to sustain a price point above $100k, a critical level for the cryptocurrency.
This trend has led to increased market uncertainty, with sellers taking advantage of the situation to either profit or mitigate potential losses.
The Importance of $100k for Bitcoin
CryptoQuant analyst, Crazzy, has emphasized the significance of the $100k mark for Bitcoin.
This level is crucial for short-term holders to turn a profit, with recent investors operating at a 3% loss and those holding Bitcoin for less than six months seeing their profit margins decrease from 30% to 7%.
In order for market confidence to be restored, Bitcoin must maintain a value above $100k.
If it continues to trade below this threshold, investor sentiment may decline further, potentially leading to panic selling.
Possibility of Price Recovery
Despite the current struggle, there is still potential for Bitcoin to reclaim higher resistance levels.
Analysis by AMBCrypto suggests that the cryptocurrency is undergoing a healthy retracement before a potential upward trend.
The supply of Bitcoin held by long-term holders has seen a steady increase, indicating a lack of panic selling and potential continued accumulation.
This is further supported by the fact that the long-term holder SOPR (Spent Output Profit Ratio) has remained above 1, currently sitting at 1.8.
This suggests that long-term holders are slowing down profit taking and have yet to resort to panic selling.
Reduced selling pressure is also evident among active participants, as indicated by declining exchange inflows.
In summary, while long-term holders remain confident, Bitcoin needs to avoid further losses.
Current market conditions suggest that these long-term holders are propping up the market, while short-term holders are experiencing losses or minimal profits.
A trend reversal could reinforce the conviction of long-term holders and restore the confidence of short-term holders.
In essence, for a bullish outlook to persist, Bitcoin must break out and reclaim the $100k mark.
