The Short-Term Holder Realised Price measures the average price new bitcoin investors have paid for their bitcoin. With these positive indicators, the outlook for bitcoin remains bullish, with further gains likely.
However, significant levels of resistance remain above, including the current resistance trend line and the psychological level of $70,000. This suggests traders aren’t overly leveraged in either direction, removing the risk of a liquidation cascade. While there is uncertainty regarding how high bitcoin will climb, there are several pieces of evidence to suggest that it is in a healthy place and that any rally will likely face challenges before it can truly break out to new highs.
However, the outlook remains optimistic, with the possibility of further gains in the near term. This is a promising sign, as it demonstrates that newer market participants are in profit, and bitcoin is holding above a crucial support zone.
Bitcoin has steadily climbed since crossing the $60,000 mark and is currently hovering closer to the $70,000 level, a price it hasn’t reached in months. Sentiment towards bitcoin has improved with the Fear and Greed Index currently at a “Greed” level of around 70. Breaking this level could be a major bullish signal, but it could take several attempts before bitcoin clears this level. Over the past few months, the market has stabilised, with funding rates sitting at neutral levels. Fortunately, institutional inflows into bitcoin exchange-traded funds (ETFs) have been growing, with over $1 billion flowing into them in recent days.
This demonstrates growing confidence in the asset and suggests that smart money, particularly institutional investors, are bullish on bitcoin’s future. It’s crucial because it often acts as a strong support level during bull markets and as resistance during bear markets.
Currently, this price sits around $62,000, and bitcoin has managed to stay above it. Historically, breaking below this level has led to market weakness, so maintaining this support is key to any continued rally.
Funding rates indicate the cost of holding long or short positions in bitcoin futures. Source: Bitcoin Magazine
This index measures emotions in the market, with lower levels indicating fear and higher levels suggesting greed.
Trading at around $34,000 last year, bitcoin more than doubled to $73,000 over the following months.
