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Bitcoin is showing resilience, holding steady above $69,000 after a slight pullback from recent local highs of $73,600. After weeks of bullish momentum and approaching an all-time high, Bitcoin has settled just below the critical resistance of $73,794, a key level that, if surpassed, would push the cryptocurrency into price discovery mode.
According to data from CryptoQuant, short-term holders of the coin are experiencing a net P/E of negative 20 BTC, indicating a wave of panic selling among retail investors. This type of behavior, often driven by Fear, Uncertainty, and Doubt (FUD), can precede a significant price spike as strong hands accumulate Bitcoin at lower prices.
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Historically, similar selling by retail investors has been followed by renewed bullish momentum as long-term holders seize the opportunity to enter or consolidate their positions. If Bitcoin can maintain support above $69,000, the odds of a breakout past its all-time high will increase significantly.
Market watchers are now watching the resistance level closely, as crossing it could spark a wave of buying interest and push Bitcoin to new highs. The coming days could be crucial, paving the way for Bitcoin’s next big move.
Weak hands sell Bitcoin
Bitcoin recently attempted a breakout to new heights but failed to breach its all-time high of $73,794, entering a consolidation phase as the market looks ahead to key events: the US elections next week and the Fed’s expected interest rate decision.
Latest data for CryptoQuant, shared by analyst Axel Adler on XIt indicates a noteworthy trend among short-term BTC holders. The net profit to loss ratio for these holders shows a negative balance of -20 BTC, indicating a wave of panic selling after Bitcoin struggled to reach new highs. This selling among short-term investors, who tend to respond more quickly to market fluctuations, suggests some caution amid uncertainty.
Adler emphasizes that in such turbulent times, a long-term “HODL” (hang on for dear life) approach can be the most useful strategy. Maintaining strength through market noise has historically rewarded BTC investors who kept their positions intact during periods of bounces and increased volatility.
With Bitcoin seeing an all-time high, a successful breakout will likely signal the beginning of a broad bull run in the market. The coming days are crucial as Bitcoin is at a pivotal point in its cycle, balancing strong consolidation with the potential for explosive growth.
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The impact of the Federal Reserve’s decision on interest rates, coupled with potential election outcomes, could create the market conditions needed for Bitcoin to surpass its all-time high. If this level is breached, it would not only confirm the bullish outlook for BTC, but would likely trigger a rally across the entire cryptocurrency market.
BTC held above key support
Bitcoin is currently trading at $69,620 after bouncing from its recent high near $73,600. Despite this pullback, the bulls remain in control as BTC holds firm above the crucial support level of $69,000 – a price point that has served as resistance since late July. This level has now turned into strong support, reinforcing the bullish sentiment in the market.
If Bitcoin settles above $69,000, the price will likely make a renewed surge above all-time highs. Breaking this resistance will push Bitcoin into uncharted territory, potentially sparking a new wave of bullish momentum and price discovery. However, if the price falls below this mark, it may indicate the need for a more significant correction to gather sufficient purchasing power for the next upward move.
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The $69,000 level is a key indicator of market confidence, as losing it means BTC may temporarily seek lower support levels to attract new buyers and stabilize before another attempt to reach new highs. Currently, Bitcoin’s price structure remains strong, and as long as this support holds, the market expects more upward momentum in the coming days. Bulls are watching this level closely, as it could define the next phase of Bitcoin’s uptrend.
Featured image by Dall-E, chart from TradingView
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