BTC price bounces at support that fueled 2023 bull market

Bitcoin (BTC) could experience relief from selling pressure as traders’ profits reach minimal levels.

On April 18, an analysis published by Julio Moreno on X (previously known as Twitter), the head of research at the cryptocurrency on-chain analytics firm CryptoQuant, indicated that a potential reversal in Bitcoin’s price decline could be imminent.

Bitcoin traders reach line in the sand for profit margins

Bitcoin and cryptocurrency traders have endured a disappointing week with falling Bitcoin prices, but signs point to an imminent market correction.

Based on information from CryptoQuant, traders have reached the mark where their exchange holdings cover their initial investments at a price of $60,000.

Traders’ urge to sell Bitcoin may be lessening since the unrealized profits have almost vanished, according to Moreno.

A separate graph displayed the earnings or losses for investors holding Bitcoin for a short period, specifically those who have owned it for 155 days or fewer.

These speculators have exhausted their profitable trading opportunities, indicating that selling activity could soon decrease to minimize incurring losses.

Moreno added:

“Traders’ realized price (pink line) has acted as support for prices during a bull market and it’s now at ~$60K.”

BTC price bounces at support that fueled 2023 bull market

To date, Bitcoin’s price against the US Dollar has dipped briefly beneath $60,000 just once since reaching new peak levels in March.

According to CryptoMoon’s report, it is common for Bitcoin’s price to pull back after reaching new all-time highs. The unexpected peak prior to this week’s block subsidy halving increased the anticipation that a correction in Bitcoin’s price was imminent.

The price returns of Securities That Held (STHs) have often signaled market lows, with the trendline providing consistent support since the conclusion of the 2022 bear market.

Only for a brief period in August last year did BTC/USD trade below STH realized price.

BTC price bounces at support that fueled 2023 bull market

BTC price tentatively bounces

Bitcoin experienced a rebound on April 18, climbing up to $64,182 on Bitstamp according to information from CryptoMoon Markets Pro and TradingView.

BTC price bounces at support that fueled 2023 bull market

According to Rekt Capital’s assessment, we are currently experiencing a 18% price drop that has persisted for ten days. In terms of depth, this pullback is nearly as deep as past bargain-buying opportunities (which didn’t exceed 23% in depth).

“Time-wise however, this is still one of the shortest retracements in this cycle (currently only 10 days long). Previous pullbacks have lasted 2-3 weeks and at most up to two months.”

BTC price bounces at support that fueled 2023 bull market

Skew, another trader, expressed the view that a stronger indication of actual market demand would boost faith in a complete market rebound.

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2024-04-18 20:14