Bitcoin has exhibited signs of resilience, rebounding above $60,000 after closing below its 200-day exponential moving average (EMA) for the second consecutive week. Despite the recent volatility, on-chain data suggests that long-term holders remain unfazed and continue to accumulate Bitcoin.
The Bitcoin market has witnessed a notable shift in investor behavior, with a growing number of long-term holders (LTHs) holding onto their coins through periods of market turbulence. This trend is evident in the realized market capitalization, which has recorded a positive net value of $3 billion, indicating that LTHs are accumulating Bitcoin despite short-term selling pressure.
Miner Selling Pressure Eases
Bitcoin miners, who have traditionally been significant sellers, have shown signs of reduced selling pressure in recent weeks. This suggests that miners may be accumulating Bitcoin rather than offloading their holdings, which could contribute to price stability.
Global Liquidity and Stablecoin Supply
The increasing liquidity in the cryptocurrency market is another factor supporting a potential Bitcoin rally. The global M2 money supply has been expanding, while the stablecoin supply ratio (SSR) has declined, indicating a higher availability of stablecoins for purchasing Bitcoin.
Technical Analysis: Breaking Through Resistance
From a technical analysis perspective, Bitcoin’s recent price action suggests a potential bullish reversal. The cryptocurrency has successfully reclaimed the 200-day EMA, a significant technical indicator. Additionally, Bitcoin is approaching a descending broadening channel pattern, which, if broken, could signal a bullish breakout.
However, Bitcoin faces resistance near the $61,700 level, where it intersects with the 50-day and 100-day EMAs. Breaking through this resistance is crucial for confirming a bullish reversal and potentially triggering a rally towards the “ChoCH” level above $62,737.
While the short-term outlook for Bitcoin remains uncertain, the underlying fundamentals suggest a potential for a bullish reversal. The resilience of long-term holders, coupled with easing miner selling pressure and increasing liquidity, create a positive environment for Bitcoin’s price appreciation.
However, breaking through the current resistance levels will be crucial to confirm a sustained uptrend. Investors should closely monitor market developments and technical indicators to make informed trading decisions.
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Author: Sb
This post was originally published on cryptonewsfarm.com
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