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bitcoin has experienced a whirlwind of volatility following its recent all-time high of $93,483 set on Wednesday. In recent days, the price has oscillated between this record level and a low of $85,100, indicating the possible start of a consolidation phase before the next major move. Traders and investors are now closely monitoring whether btc will stabilize or continue its upward trajectory.
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Key data from CryptoQuant suggests that selling pressure may increase rapidly, driven primarily by speculative traders looking to make quick profits. However, this does not necessarily spell trouble for bitcoin's bullish momentum.
Analysts predict that much of the selling pressure will be absorbed by growing demand for bitcoin ETFs, which have gained significant traction among institutional investors.
This balance between short-term selling and institutional accumulation could set the stage for bitcoin's next move. With volatility expected to persist in the coming days, market participants are on the lookout for signals that could indicate the direction of btc price action. Whether this phase leads to a deeper correction or pushes bitcoin towards new highs, one thing is clear: bitcoin continues to dominate the financial landscape with its dynamic performance.
Strong bitcoin Demand Supports Bullish Price Action
bitcoin price action has been impressive, rising 38% in the last ten days. This rapid rise has caught the attention of many investors, reaffirming the growing strength of demand for bitcoin.
<a target="_blank" href="https://x.com/AxelAdlerJr/status/1857304038166991228″ target=”_blank” rel=”nofollow”>Key insights from CryptoQuant analyst Axel Adler offers insight into current market dynamics, highlighting that bitcoin is trading above its cost basis for short-term holders (STH) of $69,000. This level represents a crucial support threshold for those who have acquired bitcoin in recent months, indicating solid demand above this price.
Furthermore, the MVRV (market value/realized value) ratio is 1.3, suggesting that bitcoin is still profitable. However, Adler notes that if this ratio crosses the 1.35 mark, it could trigger selling pressure from short-term speculators looking to lock in profits.
While this may cause some volatility in the market, it is important to note that the majority of these coins are expected to be absorbed by growing institutional demand, particularly through bitcoin exchange-traded funds (ETFs).
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This data points to a significant change in bitcoin's rally: rather than being driven by speculative futures trading, the recent surge appears to be driven by strong spot demand. Spot demand typically reflects more sustainable and stable price movement than the volatility often seen in futures-driven rallies.
As bitcoin continues to trade above key support levels, the outlook remains bullish, driven by a healthy balance between speculative trading and long-term institutional interest.
btc Technical View: Prices to Watch
bitcoin is trading at $89,240, reflecting a 7% decline from its recent all-time high of $93,483. The price has consolidated below this level following a period of aggressive bullish momentum that propelled it into price discovery territory.
This pause in the rally allows the market to stabilize and test key support levels before determining its next move.
During this consolidation, the $85,000 mark has become a crucial support level. If bitcoin can hold above this level in the coming days, it may set the stage for another rise, potentially challenging the $90,000 resistance and retesting its all-time high. A successful recovery to $90,000 would indicate renewed bullish momentum, paving the way for further price expansion.
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However, if the support at $85,000 does not hold, a deeper correction could occur. In this scenario, bitcoin would likely seek lower demand, with $82,000 emerging as a major area of interest for buyers.
As the market navigates this critical phase, traders and investors will closely watch the price action for signs of a breakout or pullback, and both scenarios have implications for bitcoin's near-term trajectory.
Featured image of Dall-E, TradingView chart
