Bitcoin is strong, adding nearly 30% after plunging to $49,000 in early August. As bulls strengthen and fundamentals favor the world’s most valuable coin, prices remain below $65,000. Looking at the daily chart, this reaction level coincides with the August high.
Technically, if buyers get the necessary momentum, crossing this level, it can rise to $70,000, a psychological level, and even break $72,000. If this happens, it will mark the first time since June that the bulls have overcome resistance at their reaction rate.
Bitcoin Rises As Selling Pressure Drops, Why Is $65,000 Hard To Break?
The inability of buyers to settle the last $65,000 comes as on-chain data shows that sellers are losing power. After the panic at the beginning of September, the rise in the rate of sales has seen traders change their strategy, focusing on losses and long-term reductions.
According to one commentator on X, pointing in the trading data, there was a significant decrease in the BTC sales in losses during the last trading week. Bitcoin realized the cap shows that traders who lost money last week dipped below $ 5 million to $ 4.7 million.
This means that many traders are no longer willing to see their coins lost. In turn, the decline in selling pressure should, in theory, lift the bulls, setting the stage for further gains.
The immediate resistance level, looking at the candlestick arrangement on the daily chart, is $65,000. However, the problem is that the bulls could not break through this level of not finishing even with great confidence.
Bitcoin Sharpe Ratio At 11.8%, There’s Plenty of Room to Grow
As selling pressure eases, so does the analyst noted that the Bitcoin Sharpe ratio is around 11.8%. On-chain analysts use the ratio to measure risk-adjusted returns relative to the United States financial markets.
At those rates, it means that BTC holders, last year, were in the money, earning more than bond holders.
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Generally, whenever the Bitcoin Sharpe ratio rises to around 20%, it points to a market upside. As the average is 11.8%, it shows that there is room for growth before reaching the peak of the projection.
Featured image from Canva, chart from TradingView