Bitcoin finds itself at a critical juncture as the market navigates uncertainty and growing doubt in the coming days. After reaching an all-time high (ATH), the price fell sharply to $92,000, prompting a shift in sentiment from extreme heat to cautious optimism. This rapid correction has left many traders questioning the sustainability of Bitcoin’s recent rally and whether the market may be entering a new phase.
CryptoQuant analyst Maartunn recently highlighted compelling data that sheds light on the current state of the market. According to Maartunn, the supply held by Short Term Holders (STH) has reached its highest level in 40 months. This is an important development, as high STH holdings are often associated with market peaks or potential trend shifts.
If the price holds above key support levels, it may indicate a healthy correction and pave the way for a renewed rally. However, failure to regain momentum could confirm the fears of many market participants, leading to a deeper correction and increased selling pressure. As Bitcoin navigates this crossroads, all eyes are on the data and the market’s next move.
Uncertainty Driving the Market
Since Bitcoin reached its all-time high (ATH) of $108,300, it has experienced significant volatility, leading to increased uncertainty within the market. Some analysts are convinced that ATH marks the peak of the current bull cycle, and they do not foresee that they will not face BTC again in the near term. On the other hand, there are those who believe that the bull run is far from over and that the recent price swings are part of a healthy market consolidation ahead of a potential rally.
Maartunn recently shared data on X that provides valuable insight into the current state of the market. According to Maartunn, the supply held by Short Term Holders (STH) has reached 5,439,700 BTC, the highest level in 40 months.
STH Supply tends to increase during bullish periods as short-term investors accumulate Bitcoin in anticipation of price gains. This sharp increase indicates that the multi-year decline in STH supply has come to an end, indicating a potential shift in market dynamics.
For many analysts, this is a bullish signal, as it suggests that short-term holders are positioning themselves for further price appreciation. However, uncertainty remains, as the broader market is still experiencing periods of volatility, and BTC must overcome key resistance levels to ensure that the rally is truly sustained. The data from Maartunn points to the strength of the bullish sentiment, but it is clear that Bitcoin’s future direction is not yet set in stone.
BTC Weekly Close
Bitcoin is currently trading at $97,000 after several days of high volatility and uncertainty. As the weekly close approaches, the $97K level has become critical in determining the next direction of price action.
If Bitcoin is able to hold above this key level by the end of the week, it could indicate confirmation of a bullish continuation, with a possible major rally on the horizon. The ability to maintain this support could spark renewed buying pressure, propelling Bitcoin to higher price targets.
On the other hand, if Bitcoin fails to hold above $97K and closes the week below this limit, the market may face a deep correction. This could send the price back into testing the most sought-after areas, which could lead to continued downside risks in the coming weeks.
The next few days are critical, as the weekly close could set the tone for Bitcoin’s near-term price action, with analysts carefully monitoring whether this support level holds firm. As market sentiment remains indeterminate, a decisive move above or below $97K will provide important insights into Bitcoin’s future direction.
Featured image from Dall-E, chart from TradingView