In the wake of a recent drop from the $110,000 threshold, Bitcoin has faced a steady retreat to around $104,000. This downward trend has sparked bearish sentiments within the cryptocurrency landscape; however, broader investor outlook remains cautiously optimistic.
Strong Bullish Sentiment for Bitcoin Persists
As Bitcoin stabilizes around the $104,000 mark, increasing bearish activity emerges. Yet, BTC continues to hover above a pivotal price point that traditionally signals resilience against bearish trends.
This significant benchmark is referred to as the realized price for short-term holders, which currently stands at approximately $98,300. Traders often monitor this level as it has historically acted as a supportive foundation for upward price movements, intricately linked to overall market strength even amid prevailing economic uncertainty.
As noted by Alphractal, a prominent platform for on-chain data analytics, the $98,300 threshold represents “the last level securing profits for investors.” Provided Bitcoin remains above this critical price, the platform expresses confidence that the bullish narrative is still alive.
This observation underscores that Bitcoin continues to exhibit stability, with limited price fluctuations suggesting potential for further upward movement. However, a significant drop below the $98,000 level could trigger more drastic short-term declines.
Consequently, Alphractal advised putting a stop loss just beneath $98,000. BTC’s sustained position above this point hints at an ongoing bull market, with the current declines perceived more as a healthy consolidation rather than the onset of a downward trend.
Declining Selling Pressure from Short-Term Holders
This upbeat sentiment is mirrored in the Bitcoin Buy/Sell Pressure Delta, which gauges the prevailing market dynamics between buyers and sellers. Alphractal has highlighted a positive trend among short-term investors in recent analyses.
According to a report shared on X, the on-chain experts pointed out that selling pressure from short-term holders has reached an oversold condition. This scenario typically signals a potential pause in the downward trajectory of Bitcoin’s price. The oversold state also represents an attractive buying opportunity for traders looking to capitalize on a potential rebound.
In simple terms, this shift in market behavior suggests that the recent wave of panic selling is losing momentum. As the selling pressure from short-term holders declines, it may pave the way for a possible recovery, with key thresholds like the STH Realized Price offering robust resistance against bearish forces.
