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Bitcoin Will Be Set For New ATHs If It Breaks This Resistance: Analyst

An analyst has explained how Bitcoin could be positioned for new all-time highs (ATHs) if it can break through this on-chain resistance level.

Bitcoin On-Chain Data Could Suggest This Level Holds Major Resistance

In a new post on X, analyst Ali discussed Bitcoin’s current on-chain resistance. In on-chain analysis, the strength of support and resistance levels is based on the total amount of cryptocurrency last acquired at each level.

Below is a chart for Glassnode’s UTXO Realized Price Distribution (URPD) metric, which shows the supply distribution across the various price levels based on where the investors bought their coins.

Bitcoin URPD

From the graph, it’s visible that in terms of the levels currently ahead of the spot price, the $66,250 mark stands out as it hosts the cost basis of over 2% of all Bitcoin UTXOs.

Generally, the cost basis is a special level for any investor, and they are naturally more likely to react when it is retested, as it can lead to a flip in their profit-loss situation.

The spot price retesting a level won’t produce much reaction if only a few investors share their cost basis around the level. Still, if many holders bought there, the cryptocurrency could see visible effects upon a retest.

Investors who are losing money may look forward to such a retest to exit out at their break-even point, as they may fear that the asset will fall back down again in the future, so getting away with their initial capital would seem like the ideal decision.

As such, a retest of a level dense with UTXOs from below can lead to a selling reaction in the market, making these levels points of strong resistance for Bitcoin.

Since the $66,250 level appears to be where the most coins were purchased out of the levels ahead, this level could be the toughest one to break for the cryptocurrency.

On the brighter side, though, the levels after this point are relatively thin. “Once BTC breaks past this level, it will be positioned for new all-time highs!” explains the analyst.

The market intelligence platform IntoTheBlock has also discussed about on-chain cost basis distribution in an X post today. As revealed by the firm, around 10% of all addresses acquired their coins between the current spot price and the all-time high the asset set back in March.

Bitcoin Cost Basis

This would naturally mean that 10% of the total addresses, equivalent to 5.16 million, are in the red on the Bitcoin network.

BTC Price

Bitcoin has continued to move in its recent range, with its price currently trading around the $62,800 level.

Bitcoin Price Chart

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Bitcoin Retests Resistance: Here’s The Level A Break Could Lead To

Data shows Bitcoin is currently retesting a major on-chain resistance level, and a break above which can potentially lead to a surge in its price.

Bitcoin Has Major On-Chain Resistance Around $67,000

As pointed out by analyst Ali in a post on X, BTC may be able to see a rise towards the $72,900 level if the asset can break the current on-chain resistance barrier.

In on-chain analysis, any level’s potential to act as support or resistance is measured using the amount of Bitcoin that was acquired/bought by the investors around said level.

The analyst has shared the chart for the “UTXO Realized Price Distribution” (URPD) indicator from Glassnode, that reveals how the various levels around the current spot value of BTC are looking like right now based on the density of supply that was last bought at them.

Bitcoin URPD

The URPD here is “ATH partitioned,” which means that the price ranges here are defined by dividing the levels between zero and the current all-time high (ATH) into 100 equal partitions.

From the chart, it’s visible that the partition around the $66,990 level carries the cost basis of a notable amount of the supply right now (1.3%). This also happens to be the range BTC is retesting at the moment.

Generally, the cost basis is a special level for investors, and thus, they tend to be more likely to show some reaction when a retest takes place. If a large number of holders share their cost basis inside the same narrow range, then this reaction may result in a scale that could be relevant for the market.

As for what direction this reaction from the holders would be probable to happen depends on the side the retest is happening from. A retest from under (meaning that these holders had been in loss prior to the retest) could lead to a selling reaction in the market.

This is because these investors may not want to risk the cryptocurrency declining again in the future, so exiting while they have the opportunity to at their break-even might be tempting.

As such, retests like these can lead to the asset feeling some degree of resistance. In the current case, the range is notably filled up with coins, so it’s possible that the strength of this resistance would be just as powerful.

From the chart, it’s visible that after this range, the asset potentially faces no strong on-chain resistance barriers until the $72,879 level, which hosts the cost basis of about 1.61% of the supply. “If Bitcoin can break past $66,990, it will likely rise toward $72,880!” says Ali.

BTC Price

Bitcoin has been climbing up in the past day, with its price now reaching the $67,200 level. Should this surge be sustained, the asset would be through the current resistance block.

Bitcoin Price Chart

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Bitcoin Has Large Resistance Wall Ahead: Here’s The Level To Watch

On-chain data suggests Bitcoin has a large wall of resistance ahead of it currently. Here are the exact levels that make up this important range.

A Large Amount Of Bitcoin Supply Was Purchased Between $42,700 & $44,000

According to data from the market intelligence platform IntoTheBlock, BTC is sitting just below a significant on-chain resistance zone. In on-chain analysis, the strength of any resistance or support level is defined based on the number of coins acquired by the investors there.

To any holder, their cost basis is naturally an important level; thus, they may be more prone to make some moves whenever the cryptocurrency’s spot price retests their profit-loss boundary.

How the investors might react to such a retest can change depending on the direction of the retest. Holders at a loss can sometimes be desperate to exit the market, so if the price retests their cost basis (that is, the retest is happening from below), they might sell to at least be able to get back their investment.

Such selling can provide resistance to the price. Only a few investors making such moves may not be relevant to the broader market. Still, if a significant number of traders acquired a large amount of BTC inside a narrow range, the reaction produced by a retest could be sizeable.

On the other hand, investors who were in profit before the retest may look at dips in their cost basis as an opportunity to accumulate more, thinking that the price would go up again. This buying, when large enough, can support the asset.

Now, here is a chart that shows how the various Bitcoin price ranges look like right now in terms of the amount of BTC that was acquired at them:

Bitcoin On-Chain Resistance

As is apparent from the graph, the $42,700 to $44,000 range hosts the cost basis of 2.68 million addresses, which acquired a total of 1.02 million BTC inside it. The average price of this range is around $43,400, which is above the current spot price of the cryptocurrency.

“Uncertainty can cause these holders to sell into their break-even point, increasing resistance in a move up,” explains the analytics firm. If Bitcoin can break through this resistance, though, it may have an easier time exploring higher levels, as it offers less resistance.

The chart shows that below the current spot price is the substantial $41,400 to $42,700 support range, which has helped cushion Bitcoin’s fall during the recent correction. Thus, even if the resistance zone rejects BTC, this support area may at least help it return for another go.

BTC Price

At the time of writing, Bitcoin is trading around the $43,200 level, down 8% in the past week.

Bitcoin Price Chart

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$47,600 Or $38,600? What Could Be Next For Bitcoin

An analyst has pointed out two demand zones that could be important for Bitcoin. Here’s what could be next for BTC based on these supply walls.

Bitcoin On-Chain Support And Resistance Levels Could Provide Hints For What’s Next

As explained by analyst Ali in a new post on X, Bitcoin has recently been floating between two major supply walls of the asset. “Supply wall” refers to the amount of Bitcoin that addresses acquired in any given price range.

The chart below shows what the different supply walls look like for BTC for the ranges around the current spot price of the cryptocurrency.

Bitcoin On-Chain Support & Resistance

In the above graph, the size of the dot represents the number of coins the investors bought inside the corresponding range. It would appear that the $41,200 to $42,400 and $42,400 to $43,700 ranges are notably heavy with supply.

To be more particular, the former range saw 1.92 million addresses buy a total of 723,490 BTC, while the latter witnessed an accumulation of 706,400 BTC from 1.67 million holders.

For any investor, their acquisition price or cost basis is an important level, as when the asset’s price retests, their profit-loss situation can potentially change. As such, the holders are more likely to show some reaction when such a retest takes place.

Naturally, just a few investors displaying a reaction won’t affect the market, but if many addresses share their cost basis inside a narrow range, the reaction from a retest could end up being sizeable.

Because of this reason, major supply walls (like the two mentioned just earlier) can end up being important retests for Bitcoin. Generally, the asset is more likely to feel support when this retest happens from above, while the coin could feel some resistance when it’s from below.

These effects seem to follow because of how investor psychology tends to work; an investor who was in profit before the retest might want to take a further gamble, believing the same price range to be profitable again. Such buying is the source of the support.

Similarly, loss holders would be tempted to sell when the price reaches their break-even point, as they may not want to risk holding further as the coin could go back down, pulling them underwater again.

Bitcoin has been trading between two major supply walls during its recent consolidation. “A sustained close beyond these bounds will help gauge BTC’s trend,” notes Ali.

The chart shows that the next large resistance ahead is between $46,300 to $47,600, while $38,600 to $39,900 carries the next major support below. “A breakout above resistance may propel BTC towards $47,600, while a dip below support might lead to a correction down to $38,600,” explains the analyst.

BTC Price

Bitcoin is trading around the $42,700 mark as it continues its recent sideways movement.

Bitcoin Price Chart

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All Clear For $40,000? Bitcoin Shows Little On-Chain Resistance Ahead

Bitcoin might have an easy path toward the $40,000 mark as on-chain data suggests there isn’t much resistance ahead.

Bitcoin Levels Ahead Are Thin With Addresses Right Now

According to data from the market intelligence platform IntoTheBlock, there isn’t any exceptionally large resistance ahead for BTC. In on-chain analysis, resistance and support levels are defined on the basis of whether a large number of investors have bought their coins at the price levels or not.

The reason behind this is that the holders often show some reaction to the spot price retesting their cost basis (that is, their acquisition price). Whether they react by selling or buying could depend on which side the price is retesting their cost basis from.

When the spot value retests an investor’s cost basis from below, that is, when said investor had been in loss previously, the holder may react by selling their coins. This is because they might fear that Bitcoin would go down again, so exiting at break-even would sound like the ideal option.

On the other hand, the opposite type of retest may lead to the investor accumulating more, as they may think that since these same price levels turned out to be profitable earlier, they would do so again in the future.

Such buying and selling are insignificant on smaller scales, but if a large number of investors have their cost basis inside a particular price range, then the range could act as support or resistance for the asset.

Now, here is a chart that shows how the different Bitcoin price ranges look like on the basis of the concentration of investors who bought at them:

Bitcoin Support & Resistance

As displayed above, the price ranges after the current one doesn’t host the cost basis of that many investors. This implies that these prices shouldn’t offer too much resistance to the cryptocurrency, should a retest of them happen.

The range that’s thickest with investors currently is the one above $38,200, meaning that it would potentially be the trickiest to clear on the way to $40,000. This range, too, however, isn’t that much in terms of investor concentration when compared to the price levels Bitcoin has already cleared.

From the graph, it’s visible that the levels under $31,000 are especially rich with addresses. Thus, if the cryptocurrency observes a retrace towards them, it should potentially find some strong support.

IntoTheBlock also notes that with the latest rally, about 80% of the investors have now come into a state of profit, which is the highest level that the metric has seen since the bull market peak back in 2021.

It now remains to be seen if Bitcoin can keep up this rally and build up towards the $40,000 level, as at least on-chain data suggests such a move shouldn’t be too hard.

BTC Price

Bitcoin is up more than 12% within the past day alone as the asset is currently floating around the $34,400 level.

Bitcoin Price Chart

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Bitcoin Knocks At The Door Of $30,000, But Can Break Happen?

Bitcoin has approached the $30,000 mark with a sharp rally today, but on-chain data suggests the level could provide some major resistance.

1.49 Million Addresses Bought Around The $30,000 Level

According to data from the market intelligence platform IntoTheBlock, the most significant potential resistance for BTC is at the current levels. The “resistance” here refers to not the technical resistance, but rather the on-chain one.

From the on-chain perspective, levels are defined as resistance/support on the basis of the concentration of investors/addresses who bought at said levels.

The below chart shows what the distribution of the holders looks like right now across the various levels of the asset:

Bitcoin Resistance

Generally, whenever the price of the asset retests the cost basis of an investor, they may become more likely to show some kind of move. If this retest happens from below, that is, the holder had been in losses prior to this, they might be tempted to sell at break-even.

On the other hand, a decline in the price towards their acquisition price may lead to them buying more of the asset, as they might think that if these same levels proved to be profitable earlier, they could do so again in the near future.

The thicker the band of investors who have their cost basis inside a specific price range, the more pronounced effects like these would be. Thus, such ranges above the price could be looked at as sources of resistance, while those below may serve as support.

As is visible in the above graph, the $29,800 to $30,700 range is particularly rich with addresses right now. To be more particular, about 1.49 million addresses bought their coins here.

Naturally, this means that Bitcoin could find it troubling to cross above this range, as it has already happened throughout the past year. “At the same time, 73% of Bitcoin addresses are currently in profit,” notes IntoTheBlock, as the ranges below all have thick green bands currently.

While the range will be hard to clear, at least strong support below means the cryptocurrency could keep up the retests until eventually it can find a break. If BTC can indeed clear the range, it shouldn’t have much resistance at higher levels, as not many investors have their cost basis there.

One positive sign for the current rally could be the fact that it’s not driven by the derivatives side, as an analyst has pointed out on X.

Bitcoin Open Interest

In the above chart, the data for the ratio between the Bitcoin open interest and market cap is displayed. The “open interest” here is a measure of the total amount of BTC contracts open on the futures market.

The indicator’s value has declined recently, implying that the open interest has gone down relative to the market cap. This could suggest that the current rally is driven by spot buying.

BTC Price

Bitcoin is currently inside the range of major resistance discussed before as its price is trading around $29,900.

Bitcoin Price Chart

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Here’s Where Next Bitcoin Resistance Lies, From An On-Chain Perspective

Here’s where the next major resistance to clear Bitcoin could lie from the perspective of on-chain analysis.

Bitcoin Resistances According To On-Chain Data

Bitcoin has recently observed a surge beyond the $27,000 mark, and many have been wondering how long this fresh rally could continue for the cryptocurrency. One way to determine this could perhaps be by looking at where the major resistance levels are.

In terms of on-chain analysis, “resistance” generally lies in regions where many investors have their cost basis present because of how holder psychology tends to work.

The “cost basis” here refers to the average price at which an investor buys coins. When the spot price is below a holder’s cost basis, they are in a net amount of loss.

Once BTC returns to the investor’s acquisition price, they may want to sell, as at least that way, they would have avoided exiting at any losses. Due to this reason, whenever a large number of investors have their cost basis present inside a particular price range, the range could provide resistance to the asset because of the volume of selling pressure that may arise in it.

Now, here is what the different Bitcoin price ranges look like in terms of investor cost basis concentration, according to data from the market intelligence platform IntoTheBlock:

Bitcoin Cost Basis

As displayed above, the following particularly thick cost basis range is $25,853 to $29,662. “Key resistance is anticipated around $29.2K — a point of acquisition for over 1.77M addresses,” explains IntoTheBlock.

The $27,200 to $28,000 range (the range just after the current spot price of the cryptocurrency) isn’t exactly thin, either, but it has notably fewer investors than the other one. The following range, $28,000 to $28,853, doesn’t have many investors, so if BTC can clear the upcoming range, the run-up to nearly $29,000 may be clear.

While investor cost basis can act as resistance on retests from below, they can also support when being touched from up. The reason behind this could be that an investor that had earlier been in profits might have reason to believe the asset would go up again, so they might buy more at their cost basis, thinking it to be a profitable entry point.

From the image, it’s apparent that both the ranges just below the current price are very thick with addresses because Bitcoin had earlier consolidated at these price levels for a significant time.

It might be due to these strong support levels that when the asset had retraced back to $26,600 yesterday, it quickly found a rebound to the current price level.

BTC Price

At the time of writing, Bitcoin is floating around the $27,200 level, up 4% during the past seven days.

Bitcoin Price Chart

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Bitcoin Bearish Signal: NUPL Finds Rejection At Long-Term Resistance

On-chain data shows the Bitcoin Net Unrealized Profit and Loss (NUPL) has found rejection at the long-term resistance zone recently.

Bitcoin NUPL Has Observed Some Decline In Recent Days

As explained by an analyst in a CryptoQuant post, the BTC NUPL metric has failed to clear a major resistance. The “NUPL” is an indicator that tells us about the degree of unrealized profit or loss that’s currently being held by the investors.

By “unrealized,” what’s meant here is that the holders have accumulated profits/losses (due to the price being more/less than what they purchased the coins at), but they are yet to actually sell their BTC to set them in stone.

When such investors who are holding unrealized profits/losses do end up selling eventually, the profits/losses they were previously holding are said to be “realized.”

When the value of the NUPL is greater than zero, it means the average investor is carrying a profit on their coins right now. On the other hand, the indicator being below this threshold suggests the market as a whole is sitting on some loss currently.

The zero value of the metric itself naturally represents the break-even level, as the total amount of unrealized profits in the market equals the unrealized losses at this mark.

Now, here is a chart that shows the trend in the Bitcoin NUPL, as well as its 365-day moving average (MA), over the last few years:

Bitcoin NUPL

In the above graph, the quant has marked the “long-term resistance” zone that the Bitcoin NUPL has seemed to have historically followed. This area, which lies in between the values of 0.31 and 0.38, has been an important retest for the cryptocurrency, as failure here has often meant the start of a drawdown.

When coming from above, however, there have also been bullish retests of this zone, as the points marked by the green checkmarks in the chart display. A prominent example of such a successful retest was back in July 2021, when BTC hit a local bottom and proceeded with the second half of the 2021 bull run following it.

The example of a bearish resistance appears to have formed just recently, as the indicator entered the zone recently but has been rejected downwards. And with it, so has the asset’s price. It’s uncertain yet, but this rejection may have started an extended drawdown for the coin.

“Given that the NUPL index has also formed a bearish Head & Shoulders (H&S) pattern, this could mean that Bitcoin could fall into the $24,000-$20,000 range,” notes the quant. “With the successful implementation of the H&S, the local uptrend of the NUPL index will also be broken.”

The Bitcoin NUPL has also shown interesting interactions with its yearly MA in the past; the indicator has sometimes found resistance or support at this level as well.

“The last frontier for maintaining Bitcoin bullishness is the 365-day MA, which acts as reliable long-term support,” says the quant. “For the above scenario to be declared invalid, it is necessary to overcome long-term resistance sustainably!”

BTC Price

At the time of writing, Bitcoin is trading around $26,300, down 2% in the last week.

Bitcoin Price Chart

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Bitcoin aSOPR Again Retests Bull-Bear Junction Level, Will Resistance Break This Time?

Data shows the Bitcoin Adjusted Spent Output Profit Ratio (aSOPR) is retesting the historical bull-bear junction. Will a break be found this time?

Bitcoin aSOPR Is Currently Doing Another Rest Of 1.0 Level

As per the latest weekly report from Glassnode, a successful retest here could suggest a meaningful regime shift in the BTC market. The “Spent Output Profit Ratio” (SOPR) is an indicator that tells us whether Bitcoin investors are selling their coins at a profit or at a loss right now.

When the value of this metric is greater than 1, it means the average holder in the market is moving coins at some profit currently. On the other hand, values below the threshold imply the overall market is realizing some loss at the moment. The SOPR being exactly equal to 1 naturally suggests that investors are just breaking even on their selling right now.

A modified version of this indicator is the “Adjusted SOPR” (aSOPR), which filters out all selling of coins that was done within only an hour of said coins being first acquired. The main advantage of this modification is that it removes noise from the data that wouldn’t have any noticeable impacts on the market anyways.

Now, here is a chart that shows the trend in the 7-day exponential moving average (EMA) Bitcoin aSOPR over the last couple of years:

Bitcoin aSOPR

As shown in the above graph, the 7-day EMA Bitcoin aSOPR has sharply risen recently and has reached the 1 level for the first time since the pre-FTX crash. This level has been historically significant for BTC, as the crypto has often encountered resistance at it during bear market periods.

The reason behind this is the fact that the aSOPR equal to 1 line represents the break-even mark. Whenever the metric increases to this mark, it means enough holders are back in a state of neutrality that they are able to recoup their investment.

Psychologically, investors see this as getting their previously lost money “back” and hence large-scale dumping takes place here, thus providing impedance to the crypto’s price.

A successful break above this level would suggest, however, that there is enough demand in the Bitcoin market right now that holders are able to realize their profits and buyers are present to absorb this selling. Because of this, such breaks have usually led to a transition from bear to bull markets.

When bull markets take hold, the effect of the aSOPR 1 level flips, and the line instead starts providing support to the price of BTC.

BTC Price

At the time of writing, Bitcoin is trading around $21,200, up 23% in the last week.

Bitcoin Price Chart

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Bitcoin aSOPR Profit-Loss Junction Continues To Act As Resistance

On-chain data shows the Bitcoin aSOPR profit-loss junction has continued to act as resistance to the price of the crypto.

Bitcoin aSOPR Bounces Back Down From The Breakeven Line

As pointed out by an analyst in a CryptoQuant post, the aSOPR value equal to ‘1’ line has been acting as resistance for around 185 days now.

The “Spent Output Profit Ratio” (or SOPR in short) is an indicator that tells us whether the average Bitcoin investor is selling at a profit or at a loss right now.

When the value of this metric is greater than 1, it means the holders as a whole are moving their coins at some profit currently.

On the other hand, the indicator’s value being lesser than the mark implies the overall market is realizing loss at the moment.

Naturally, SOPR values exactly equal to 1 signify that the average holder is just breaking even on their investment.

A modified version of the metric is the “Adjusted SOPR” (aSOPR), which excludes from the data the transactions of all those coins that moved again within only an hour of their last transfer.

Now, here is a chart that shows the trend in the Bitcoin aSOPR over the last couple of years:

The value of the metric seems to have been in the loss region for a while now | Source: CryptoQuant

As you can see in the above graph, the quant from the post has marked the relevant zones of trend for the Bitcoin aSOPR.

During historical bear periods, the indicator has always found sharp resistance at the junction between the profit and loss regions, and has thus remained locked below the 1 level.

In the current bear market as well, the metric has been staying at values less than one. It has made several attempts to break into the profit zone, but so far it has been rejected back down each time.

The reason behind this is that the aSOPR reaching a value of 1 suggests investors, who were previously in loss, are now selling at the same price they got in. Psychologically, this appears to these holders as gaining their money “back.” Hence, a large amount of investors usually dump at this point, providing resistance to the price.

In the past, proper breaks above the profit-loss junction have meant the start of a new bull rally. Since the Bitcoin aSOPR is still trapped in the loss zone, it’s safe to assume the market is yet to see through this bear.

BTC Price

At the time of writing, Bitcoin’s price floats around $18.8k, down 5% in the past week.

BTC has been moving sideways | Source: BTCUSD on TradingView
Featured image from Marco Pagano on Unsplash.com, charts from TradingView.com, CryptoQuant.com

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Will The Bitcoin Short-Term Holder Breakeven Point Act As Resistance Again?

On-chain data shows the Bitcoin short-term holder SOPR is approaching the “breakeven” value, a point that has acted as resistance for the crypto’s price in the past.

Bitcoin Short-Term Holder SOPR Surges Up And Approaches A Value Of “1”

As pointed out by an analyst in a CryptoQuant post, the selling pressure from the short-term holders may see an increase if their SOPR keeps rising up.

The “Spent Output Profit Ratio” (or SOPR in short) is an indicator that tells us whether the Bitcoin market as a whole is currently selling at a profit or at a loss.

The metric works by going through the on-chain history of each coin being sold to see what price it sold at before this. If the previous value of any coin was less than the current price, than that coin moved at a profit just now.

While the last selling price being lesser than the latest one would imply the sale of the coin lead to a realization of loss.

When the SOPR’s value is greater than one, it means the overall market is selling at a profit at the moment. On the other hand, values below the threshold suggest the average investor is moving BTC at a loss.

Now, the “short-term holders” (STHs) include all Bitcoin investors who sell their coins after holding them for less than 155 days. The below chart shows the trend in the SOPR specifically for this cohort.

The value of the metric seems to have observed some rise in recent days | Source: CryptoQuant

As you can see in the above graph, the Bitcoin STH SOPR sunk down below “1” a few months back, suggesting that these holders were selling at a loss.

During these last few months, the indicator has tried to escape this zone twice, but both times it failed and the price also simultaneously went down.

The reason behind this trend is that the “SOPR = 1” line represents the “breakeven” point for the market. As the metric hits this level, investors who had previously been at loss think they have now got their money “back” and thus sell their coins here.

This leads to a higher than usual selling pressure from the STHs at this mark, which provides resistance to the price of Bitcoin.

Recently, the SOPR for this holder group surged up and is now approaching the threshold once again. If past trend is anything to go by, once it tests the value, BTC may see some downtrend this time as well.

BTC Price

At the time of writing, Bitcoin’s price floats around $23.7k, up 5% in the last seven days.

Looks like the price of the coin has been consolidating sideways during the last few days | Source: BTCUSD on TradingView
Featured image from Amjith S on Unsplash.com, charts from TradingView.com, CryptoQuant.com

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The Bitcoin Resistance Level That Just Won’t Budge

Bitcoin has hit a roadblock in its recent upward trajectory. After the digital asset had successfully broken above $47,000, it had been subsequently beaten down by the bears. This was a result of an important resistance point that proved impossible for bitcoin to beat at the time. It continues to struggle with this point even now and has declined into the $44,000 territory. This point remains the level to beat for the cryptocurrency to once more register a bullish trend.

Bitcoin Fails To Break Resistance

Bitcoin establishing a bullish trend can sometimes be a tricky thing. This is due to the fact that as the price grows, the resistance being mounted by bears at various levels becomes increasingly hard to beat. This was the case at the $47,500 level where bitcoin had met significant resistance. Failure to break above this level had sent the digital asset spiraling back down and eventually landing in the low $40,000s.

Related Reading | TA: Bitcoin Tops Near $47K, Why The Bulls Must Defend $45K

This point is pertinent for bitcoin to beat given that it is the major resistance between the asset and the coveted $50,000 price point. It may not be the previous all-time high but hitting $50,00 surely puts the cryptocurrency on a path to setting another ATH.

$47,500 is an important technical level for BTC which means a failure to maintain a position above this would be brutal, as evidenced by the recent downtrend. After this had been the $45,000 level, where it was presumed bulls had formed significant resistance. However, with BTC tumbling below this point, it is obvious that the support formed at this level fails to rival that of the $36,000 to $38,000 level.

BTC on a downward correction | Source: BTCUSD on TradingView.com

This is nothing more than a correction though after a tremendous bull run, notes Egor Volotkovich, Executive Director of cross-chain solutions at EVODeFi. “Bitcoin is leading a general market correction today as it retested the $45,000 support level after surging to a 24-hour high of $47,106,” said Volotkovich. “The correction is a somewhat temporary breather that the BTC investors are exhibiting following periods of consistent growth and resilience across the board.”

Moving Towards Better Things

In the long term, Bitcoin continues to look better. The digital asset which had broken above its 50-day moving average had been able to establish a more bullish trend in the short term. Taking this on into the long term.

Related Reading | Bitcoin Retail Reaches Second-Highest Buying Rate In History. Good Or Bad?

It has also formed new support around its 200-day moving average which has always been a sign of good things to come in the past. And with momentum picking up in the last month and buying ramping up both on the institutional and retail level, there is a stronger argument for the long-term profitability of the digital asset.

“With the continuous buying momentum as seen by the inflows into major BTC-hinged products like the Canadian Bitcoin ETFs, the chances that Bitcoin’s momentous growth will be reintroduced in the near future is high, and should this happen, we may see prices retest the $48,000 benchmark before mid-month,” concluded Egor Volotkovich.

Featured image from MARCA, chart from TradingView.com

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The Level To Beat For Bitcoin To Register Another Bull Rally

Bitcoin remains on a positive recovery trend. One that could very well see it beat the coveted $45,000 resistance point. This price level remains the level to beat for the digital asset as this is where bears continue to mount the most resistance. Bitcoin had tested this level in the early hours of Friday but like always, met significant push that caused it to crash back down below it.

In the wake of this crash, the market saw bitcoin lose almost $1,000 in the space of two hours. However, this dip would be defined by a higher low as bitcoin had been able to find support above $44,000 and continue on its recovery. This demonstration at $45,000 shows that until the digital asset can successfully beat and settle above this level, it can never truly be said to have begun another bull run.

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The market is now turning favorable for buyers although sellers still maintain a majority hold on the market. If bitcoin is to beat $45,000 and register on another bull run, then buyers would have to turn up their support. Otherwise, bitcoin will continue to fail in its quest to beat this level. Thus leaving the market in what is threatening to be another long stretch of bear market.

In the short term, the indicators are turning bullish in favor of bitcoin. This comes after the digital asset cemented its position above the 50-day simple moving average, an important milestone for an asset looking to break out of a bear trend. This has successfully moved sentiment out of fear in regards to the asset and buying pressures are on the rise.

But Why $45,000 For Bitcoin?

The $45,000 level is important for bitcoin due to its trading trends in the last few months. Since the December crash, the digital asset has traded between the $36,000 and $44,000 level, never once successfully breaking above $45,000. This shows that this is where bears are taking their stand and a breach of this point would mean another resettlement into the bull territory.

In the same vein, $36,000 remains the point to beat for bears. As was witnessed the last four times bitcoin had broken above $40,000 and trended downwards again, significant support showed between $36,000-$38,000. A break below this point would be good news for bears as it would very well put the digital asset on a path down below $30,000.

BTC seeing significant support around the $36k-$38k level | Source: BTCUSD on TradingView.com

Both these points have now become important make or break points for both camps, leading to a serious tug of war between the two.

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Bitcoin is trading above $44,000 at the time of this writing. Indicators point towards another test of the $45,000 level but only if the asset can pick up enough buying momentum to recover above $44,600.

Featured image from BBC, chart from TradingView.com

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Why Bitcoin Bulls Must Hold Current Position Or Risk A Drop To $36,000

Bitcoin has now solidified its position in the bull trend. With each recovery trend has come a risk of reversal though, which makes a strong point for bulls to continue to hold the value up. In times like this, a small slip-up can end up being devising for the value of the asset causing it to cascade down into another stretched out downtrend. However, if bulls are able to hold above this point, then bitcoin may well and truly enter into another raging bull market.

Why Current Position Is Important For Bulls

Bulls need to hold the current position for bitcoin if the digital asset is to continue on this bull trend. Otherwise, the reversal may be a brutal one that sends BTC back to the bottom it is trying to claw out of. Speculations for bitcoin still remain largely bearish, so anything to take the reins completely out of the hands of the bears remains the best course of action.

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With the current zone, it remains a hard fight for bulls as efforts to drag the value down seem to be working. For bears, this will be the perfect time to once again take action. Thisis because the price of bitcoin is in a zone where it had consolidated in December, which was followed by the crash towards $33,000. Spots like these make it hard to spot a clear resistance. There is resistance nonetheless as evidenced by the struggle to keep bitcoin above $44K.

Bulls must hold over crucial point | Source: TradingView.com

It’s also important to keep in mind that probably for downtrend towards $36K remains high. However, this may not be so if it continues its distribution through this zone. Another drop below $40K may very well see bitcoin break past $30K for the first time in a year, marking the beginning of a bear market.

Bitcoin Sell Between These Points

For bearish traders, this may very well be the best position to begin getting out. If bitcoin fails to break out of this consolidation and follow through to another rally, then the trend downwards will be swift.

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The recent rally was obviously the result of a short squeeze that pushed the price of the digital asset higher. If this does not hold, then bulls will have to form another major resistance point at $43,500. Since bitcoin has fallen below its 50-day moving average, it spells a period of bear trend for it, which can very well lead to a market crash, the likes of which was experienced in January.

BTC begins recovery after losing $2K | Source: BTCUSD on TradingView.com

From here on out, the next position that would solidify bitcoin in the bull zone is above $53K. If the price fails to break above this point, then it is in all likelihood gunning towards a bear trend, and with sell-offs from the recent recovery, could combine to form a breakdown point for bitcoin.

Featured image from The Motley Fool, charts from TradingView.com