Bitcoin has experienced a whirlwind of volatility following its recent all-time high of $93,483 set on Wednesday. Over the past few days, the price has oscillated between this record level and a low of $85,100, indicating the potential onset 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.
Related Reading
Key data from CryptoQuant suggests that selling pressure may increase quickly, primarily driven by speculative traders looking to lock in quick profits. However, this doesn’t necessarily spell trouble for Bitcoin’s bullish momentum.
Analysts predict that much of the selling pressure will be absorbed by the 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 eagerly watching for signals that might indicate the direction of BTC’s price action. Whether this phase leads to a deeper correction or propels Bitcoin toward new highs, one thing is clear—Bitcoin continues to dominate the financial landscape with its dynamic performance.
Bitcoin Strong Demand Supports Bullish Price Action
Bitcoin’s price action has been impressive, surging by 38% over the past ten days. This rapid rise has caught the attention of many investors, reaffirming the growing strength of Bitcoin’s demand.
Key data from CryptoQuant analyst Axel Adler offers insight into the current market dynamics, highlighting that Bitcoin is trading above its short-term holder (STH) cost basis of $69,000. This level represents a crucial support threshold for those who acquired Bitcoin in the past few months, indicating solid demand above this price.
Additionally, the MVRV (Market Value to Realized Value) ratio stands at 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 prompt some market volatility, it’s important to note that most of these coins are expected to be absorbed by growing…
Click Here to Read the Full Original Article at NewsBTC…
