In short: Bitcoin's network fundamentals have continued to grow, but the recent price decline has sparked concerns about possible downside targets of $20,000. However, the spot price remains close to three significant pricing levels, providing strong support around the $25,300 - $26,300 region. Sustained elevation above these support levels is seen as a constructive sign, but a drop below them could signal weakness in the trend. Bitcoin appears to have reached a transition phase, with long-term holders preparing for gains in the near term before reaching full euphoria and the next price cycle top.
Our quick analysis:
Bitcoin's journey has been quite a rollercoaster, with ups and downs that leave investors biting their nails. While the network fundamentals continue to flourish, the same cannot be said for the price side of things, with stagnation plaguing the market since March. With concerns rising about downside targets of $20,000, investors may feel like they're on a runaway train with no brakes.
However, there is some good news amidst the chaos. Glassnode has identified three significant pricing levels that are providing robust support around the $25,300 - $26,300 region. These levels are the short-term holder cost-basis, adjusted realized price, and 200 WMA. The sustained elevation above these crucial support areas can be deemed as a constructive sign. Conversely, a drop below these key levels would suggest a weakness in the trend.
So, what does this mean for Bitcoin investors? The current tight-range consolidation suggests that BTC will soon hit its bottom and subsequently flip positive, according to Glassnode's co-founder Negentropic. Moreover, existing BTC holders display remarkably high conviction, which potentially signifies that they view the current market condition as an opportunity.
It's not all sunshine and rainbows, though. More chop can be expected until one week before FOMC, and investors should keep a close eye on open interest to see how the market is positioning going into June 14. In addition, Glassnode's recent research suggests that Bitcoin is in a transition phase, preparing for the next bull market top. Long-term investors of the premier crypto-asset are moving toward a state of equilibrium before reaching full euphoria.
In conclusion, the journey may be bumpy, but Bitcoin investors should take comfort in the key support levels that have emerged. It's crucial to keep an eye on the market's positioning and to remain patient as Bitcoin prepares for its next bull market top.
Image provided by Unsplash
Disclaimer: Our articles are NOT financial advice, and we are not financial advisors. Your investments are your own responsibility. Please do your own research and seek advice from a licensed financial advisor beforehand if needed.
Our quick analysis:
Bitcoin's journey has been quite a rollercoaster, with ups and downs that leave investors biting their nails. While the network fundamentals continue to flourish, the same cannot be said for the price side of things, with stagnation plaguing the market since March. With concerns rising about downside targets of $20,000, investors may feel like they're on a runaway train with no brakes.
However, there is some good news amidst the chaos. Glassnode has identified three significant pricing levels that are providing robust support around the $25,300 - $26,300 region. These levels are the short-term holder cost-basis, adjusted realized price, and 200 WMA. The sustained elevation above these crucial support areas can be deemed as a constructive sign. Conversely, a drop below these key levels would suggest a weakness in the trend.
So, what does this mean for Bitcoin investors? The current tight-range consolidation suggests that BTC will soon hit its bottom and subsequently flip positive, according to Glassnode's co-founder Negentropic. Moreover, existing BTC holders display remarkably high conviction, which potentially signifies that they view the current market condition as an opportunity.
It's not all sunshine and rainbows, though. More chop can be expected until one week before FOMC, and investors should keep a close eye on open interest to see how the market is positioning going into June 14. In addition, Glassnode's recent research suggests that Bitcoin is in a transition phase, preparing for the next bull market top. Long-term investors of the premier crypto-asset are moving toward a state of equilibrium before reaching full euphoria.
In conclusion, the journey may be bumpy, but Bitcoin investors should take comfort in the key support levels that have emerged. It's crucial to keep an eye on the market's positioning and to remain patient as Bitcoin prepares for its next bull market top.
Image provided by Unsplash
Disclaimer: Our articles are NOT financial advice, and we are not financial advisors. Your investments are your own responsibility. Please do your own research and seek advice from a licensed financial advisor beforehand if needed.
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