Bitcoin is facing increasing volatility after a recent dip at $60,000, a critical level it currently holds above. Following the Federal Reserve’s interest rate cut announcement, the price of Bitcoin rose sharply but is now retesting key demand levels, which may determine the next target.
According to data from Glassnode, there has been a clear improvement in short-term holder profits throughout the recent session. This has relieved investors who bought BTC during the bull run, as many have now returned to profits. Despite this positive data, uncertainty remains in the market, with concerns of a deep correction.
The short-term outlook remains uncertain as traders closely monitor whether BTC can hold this key level or if further pressure will prevail.
Investors are cautious, knowing that market conditions can change quickly while profitability metrics improve. The coming days will be crucial in shaping Bitcoin’s next move, and all eyes will be on whether it can maintain support and build momentum for another move higher.
Bitcoin Metrics Point To Healthy Gains
Bitcoin is currently testing a key demand level at $60,000, and confirmation beyond this threshold could push the price higher. Analysts and investors are optimistic about a possible BTC rally in the coming months, as half a century historically marked the beginning of the crypto bull run.
In this case, important data from Glassnode reinforces the positive view, especially regarding the metric Short Time Owner (STH) MVRV, which showed several sub-trends in a row below the measurement value of 1. This shows that, on average, STHs hold their Bitcoin unrealized losses.
What sets this situation apart from previous bear markets, such as 2022, is the depth and length of the STH MVRV metric that remains below 1.0. Unlike the previous decline, a small divergence is developing, where the price of Bitcoin remained low for the last month while the STH MVRV started to increase.
This suggests that the position and profitability of new investors is improving, indicating that they may not be facing the same financial stress that is often seen in typical bear market conditions.
This view fuels investor optimism, as many believe we are in the early stages of a Bitcoin bull run. With the halving event in the past, traders are carefully monitoring the price movements, hoping that the continued support above $60,000 will act as a pad for a significant increase in the BTC market.
Combining strong demand, improving investor sentiment, and historical trends paint a promising picture of Bitcoin’s future path.
BTC Technical Analysis: Key Levels to Watch
Bitcoin is trading at $61,000, maintaining strength above the 4-hour 200-hour moving average (MA) at $60,302. Although this support level shows some stability, the price remains below the 4-hour 200 MA at $61,687, which leads to mixed signals for traders who eagerly await a quick price recovery.
For the bulls to regain strength and start a rally, the price must clearly break above the 4 200 hour MA and exceed the local supply area at $66,000. This upward movement is important in establishing a bullish trend and instilling confidence in market participants.
However, the outlook could change dramatically if Bitcoin fails to hold above the 4,200 hour EMA. A drop below this support level could trigger a correction, which could lead the price down to low demand areas around $57,500. Such a move could unsettle investors and increase bearish sentiment in the market.
The next few trading sessions are important as they will determine if Bitcoin can establish a strong upward trend or if it will succumb to continued downward pressure. Traders are closely monitoring these key levels, as they will play an important role in shaping Bitcoin’s price action in the near term.
Featured image from Dall-E, chart from TradingView