bitcoin is at a crucial moment as the market navigates growing uncertainty and doubts in the coming days. After reaching an all-time high (ATH), the price fell sharply to the $92,000 level, causing a shift in sentiment from extreme optimism to cautious optimism. This rapid correction has left many traders questioning the sustainability of bitcoin's recent rally and whether the market could be entering a new phase.
CryptoQuant analyst Maartunn recently highlighted compelling data that sheds light on the current state of the market. According to Maartunn, the supply of short-term holders (STH) has reached its highest level in 40 months. This is a significant development as high STH holdings are often associated with market highs or potential trend reversals.
If the price sustains above key support levels, it may signal a healthy correction and pave the way for a fresh rally. However, failure to regain momentum could confirm the fears of many market participants, leading to deeper corrections and greater selling pressure. As bitcoin looms at this crossroads, all eyes are on the data and the market's next move.
Uncertainty drives the market
Since bitcoin reached its all-time high (ATH) of $108,300, it has experienced significant volatility, leading to growing uncertainty in the market. Some analysts are convinced that the ATH marks the peak of the current bullish cycle and do not foresee further upside for btc in the short term. On the other hand, there are those who believe that the bull run is far from over and that the recent price fluctuations are simply part of a healthy market consolidation ahead of a potential rally.
market day <a target="_blank" href="https://x.com/JA_Maartun/status/1870447879082709278″ target=”_blank” rel=”noopener nofollow”>recently shared data about which offers a crucial insight into the current state of the market. According to Maartunn, the supply of short-term holders (STH) has reached 5,439,700 btc, the highest level in 40 months.
The supply of STH typically increases during bullish periods as short-term investors accumulate bitcoin in anticipation of price gains. This sharp increase indicates that the multi-year downward trend in STH supply has come to an end, indicating a possible change in market dynamics.
For many analysts, this is a bullish sign as it suggests that short-term holders are positioning themselves for further price appreciation. However, uncertainty remains as the broader market still faces periods of volatility and btc must overcome key resistance levels to confirm that the rally is truly sustainable. Maartunn's data points to the possibility of continued bullish sentiment, but it is clear that bitcoin's future direction is not yet set in stone.
btc Weekly Close
bitcoin is currently trading at $97,000 after several days of intense volatility and uncertainty. As the weekly close approaches, the $97,000 level has become crucial in determining the next direction of price action.
If bitcoin manages to hold above this key level at the end of the week, it could signal confirmation of a bullish continuation, with a potential massive rally on the horizon. The ability to hold this support would likely lead to renewed buying pressure, pushing bitcoin towards higher price targets.
On the other hand, if bitcoin fails to stay above $97,000 and closes the week below this threshold, the market may face a deeper correction. This could cause the price to retest areas of lower demand, which could create further downside risk in the coming weeks.
The next few days are critical, as the weekly close could set the tone for bitcoin price action in the near term, and analysts are closely monitoring whether this support level holds firm. As market sentiment remains indecisive, a decisive move above or below $97,000 will provide key information on bitcoin's future direction.
Featured image of Dall-E, TradingView chart
