bitcoin is holding firm and is up nearly 30% after falling to $49,000 in early August. As bulls gain strength and fundamentals swing in favor of the world’s most valuable currency, prices are holding below $65,000. Looking at the daily chart, this reaction level coincides with the August highs.
Technically, if buyers find the necessary momentum and break through this level, the price could surge to $70,000, a psychological level, and even surpass $72,000. If this happens, it will be the first time since June that bulls have broken through the resistance at their reaction level.
bitcoin Rises as Selling Pressure Falls, Why Is It Hard to Break Above $65,000?
The buyers’ inability to break above $65,000 comes as on-chain data shows sellers are losing momentum. After fears in early September, the spike in spot rates has seen traders shift strategies, focusing on long positions and cutting losses.
According to an x analyst, x.com/AxelAdlerJr/status/1838473822896373775″ target=”_blank” rel=”noopener nofollow”>pointing As for trading data, there has been a notable drop in btc sales at a loss over the past week of trading. bitcoin’s realized market cap shows that traders who lost money over the past week fell below $5 million to $4.7 million.
This means that most sellers are no longer willing to see their coins in losses. Therefore, the drop in selling pressure should, in theory, support the bulls, laying the groundwork for even more gains.
The immediate resistance level, if we look at the arrangement of candles on the daily chart, is $65,000. However, the problem is that the bulls have not been able to overcome this liquidation level despite high confidence.
bitcoin's Sharpe ratio stands at 11.8%, meaning there is more room for growth
As selling pressure eases, so does the analyst x.com/AxelAdlerJr/status/1838498094561755275″ target=”_blank” rel=”noopener nofollow”>noted bitcoin’s Sharpe ratio is around 11.8%. On-chain analysts use the ratio to measure risk-adjusted returns relative to US Treasury bonds.
At those levels, it means that btc holders have, over the past year, been in the money, earning more than bondholders.
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Typically, when bitcoin's Sharpe ratio rises to around 20%, it indicates that the market has topped out. Since the ratio is at 11.8%, it indicates that there is more room for growth before the speculative peak is reached.
Featured image from Canva, chart from TradingView
