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bitcoin has had a volatile week, with its price fluctuating between a local high of $69,500 and a low of $65,000. After weeks of strong bullish momentum, the market has now cooled and btc is consolidating just below the crucial $70,000 level. This key threshold is considered a trigger for intensified buying pressure if bitcoin manages to surpass it.
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According to CryptoQuant data, there is still room for further growth as short-term holder (STH) coins are trading at a premium of 6.2% to net asset value (NAV). This premium is often considered an indicator of market sentiment, reflecting the optimism of short-term holders who are willing to pay above the current market value to acquire bitcoin. A higher NAV premium generally suggests that investors expect continued price appreciation and are positioning for future gains.
As btc stabilizes in its current range, all eyes are on the $70,000 mark as a potential breakout level that could pave the way for a fresh rally. With positive market sentiment and supporting data, bitcoin's outlook for the coming weeks remains encouraging, driven by both technical signals and strong buyer interest.
Retail bitcoin Buying (Again)
bitcoin is seeing increasing demand from short-term holders as its price consolidates below key supply levels, near all-time highs. Analyst Axler Adler recently x.com/AxelAdlerJr/status/1849821422459175285″ target=”_blank” rel=”nofollow”>shared critical ideas aboutshowing that bitcoin's net asset value (NAV) premium among short-term holders has risen to 6.2%.
This 6.2% NAV premium indicates that the current market price of bitcoin is trading 6.2% above the average acquisition cost for short-term holders. Basically, these investors are valuing bitcoin at a premium, suggesting optimism about the potential for further gains.
Adler explains that this metric acts as a bullish signal, highlighting the room for continued price growth. A NAV premium of 25% or more typically indicates an overheated market, implying that demand has not yet reached excessive levels.
According to Adler analysis, NAV premium is an important indicator of market sentiment. A moderate premium like 6.2% reflects healthy demand among short-term holders, aligning with an accumulation phase rather than a spike. This is especially relevant as bitcoin price consolidates under significant resistance levels, potentially setting the stage for a breakout.
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bitcoin's consolidation below its key supply levels and rising demand among short-term holders reflect a favorable environment for potential price appreciation. If demand from short-term holders continues to grow, it could fuel btc's ascent to new highs.
The balance between premium demand and manageable NAV levels could indicate sustained bullish momentum. There is a possible rally on the horizon if buying pressure strengthens at current levels.
Technical level to follow
bitcoin is trading at $66,900 after establishing solid support around $65,000. The price action indicates resilience as it consolidates above this crucial level. This support around $65,000 marks a significant turnaround, as holding above it reflects underlying strength and fuels optimism among investors. However, for bitcoin to maintain the bullish momentum, it is essential to break above $70,000 to confirm the bullish trend.
If bitcoin loses the $65,000 level, analysts predict a pullback towards the 200-day moving average (MA) at $63,274. This level is relevant as a long-term support zone. A pullback to this area could attract new buyers, reinforcing it as important support if tested.
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Investors view the 200-day MA as a key anchor for bitcoin's bullish structure. If btc can sustain above $65,000 and eventually surpass $70,000, it would indicate a continuation of the current bullish phase. Conversely, a drop below these supports would shift attention towards the 200-day moving average. Staying above this moving average is crucial to avoid a bearish reversal.
Featured image of Dall-E, TradingView chart
