bitcoin is experiencing increased volatility after a recent drop to $60,000, a critical level above which it currently remains. Following the Federal Reserve's interest rate cut announcement, bitcoin price rose aggressively, but is now retesting key demand levels, which will likely determine its next target.
According to Glassnode data, there has been a clear improvement in the profitability of short-term holders during the recent rally. This has relieved investors who bought btc during the price surge as many have now turned profits again. Despite these positive data, uncertainty persists in the market and a deeper correction is feared.
The near-term outlook remains uncertain as traders closely watch whether btc can hold this crucial level or if further downward pressure will prevail.
Investors are cautious, knowing that market sentiment can change quickly as profitability metrics improve. The next few days will be critical in shaping bitcoin's next move, and all eyes are on whether it can hold support and build momentum for another bullish push.
bitcoin Metrics Point to Healthy Gains
bitcoin is currently testing a crucial demand level of $60,000, and a confirmation above this threshold could push the price to new highs. Analysts and investors are optimistic about a possible btc rally in the coming months as halving years have historically ushered in cryptocurrency bull runs.
This time,btc&m=market.MvrvLess155&utm_source=gn_insights&utm_medium=insights_woc&utm_campaign=woc_40_2024″ target=”_blank” rel=”noopener nofollow”> Glassnode key data reinforces the positive outlook, particularly with respect to the short-term holder (STH) MVRV metric, which has shown several successive underpricing below the breakeven value of 1. This indicates that, on average, STHs hold their bitcoin at a loss not realized.
What differentiates this situation from previous bear markets, such as 2022, is the depth and duration of the STH MVRV metric which remains below 1.0. Unlike previous downturns, a slight positive divergence is developing, where bitcoin price has remained relatively stable over the last month while the STH MVRV is starting to rise.
This suggests that the positioning and profitability of new investors is improving, indicating that they may not be experiencing the same financial stress commonly seen in typical bear market conditions.
These observations are fueling investor optimism as many believe we are in the early stages of a bitcoin bull run. With the halving event behind us, traders are closely monitoring price movements, hoping that sustained support above $60,000 will serve as a launching pad for significant bullish momentum in the btc market. .
The combination of strong demand, improving investor sentiment, and historical trends paints a promising picture for bitcoin's future trajectory.
btc Technical Analysis: Key Levels to Watch
bitcoin is trading at $61,000, maintaining its strength above the 200 4-hour moving average (MA) at $60,302. While this support level indicates some stability, the price remains below the 200 4-hour MA at $61,687, generating mixed signals for traders eagerly awaiting a quick price recovery.
For the bulls to regain momentum and initiate a rally, the price must decisively surpass the 200 4-hour MA and surpass the local supply zone at $66,000. This upward movement is crucial to establishing an uptrend and instilling confidence among market participants.
However, the outlook could change drastically if bitcoin fails to hold above the 200 4-hour EMA. A drop below this support level would likely trigger a correction, which could take the price to areas of lower demand around $57,500. Such a move could unsettle investors and increase bearish sentiment in the market.
The upcoming trading sessions are critical as they will determine whether bitcoin can establish a stronger upward trajectory or succumb to further downward pressure. Traders are closely monitoring these key levels as they will play a major role in shaping bitcoin price action in the near term.
Featured image of Dall-E, TradingView chart
