Bitcoin finds itself at a pivotal juncture as the market navigates increasing uncertainty and skepticism in the coming days. After reaching an all-time high (ATH), the price fell sharply to the $92,000 level, causing sentiment to shift from extremely bullish to cautiously optimistic. This rapid correction has left many traders wondering how sustainable Bitcoin’s recent rally is 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 Marton, the supply held by short-term bondholders (STH) has reached its highest level in 40 months. This is an important development, as rising STH holdings are often associated with market highs or potential trend shifts.
If the price holds above key support levels, this could 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 deeper corrections and increased selling pressure. As Bitcoin hovers at this crossroads, all eyes are on the data and what’s next for the market.
Uncertainty drives the market
Since Bitcoin reached its all-time high (ATH) of $108,300, it has experienced significant volatility, leading to growing uncertainty within the market. Some analysts are convinced that ATH represents the peak of the current bull cycle, and do not expect further rise for BTC in the near term. On the other hand, there are those who believe that the uptrend is not over yet and that the recent price fluctuations are just part of a healthy market consolidation process ahead of a potential rally.
Market day Recently shared data on X Which provides critical insight into the current state of the market. According to Marton, the supply held by Short Term Holders (STH) has reached 5,439,700 BTC, the highest level in 40 months.
The supply of STH typically rises during bullish periods as short-term investors accumulate Bitcoin in anticipation of price gains. This sharp increase indicates that the multi-year downtrend in STH supply has come to an end, indicating a potential shift in market dynamics.
For many analysts, this is a bullish signal, because it indicates that short-term bondholders are positioning themselves for further price increases. However, uncertainty remains, as the broader market continues to face periods of volatility, and BTC must overcome key resistance levels to ensure the rally is truly sustainable. Data from Maartunn indicates that bullish sentiment may continue, but it is clear that Bitcoin’s future direction is yet to be determined.
BTC weekly close
Bitcoin is currently trading at $97,000 after several days of extreme volatility and uncertainty. As the weekly close approaches, the $97K level has become crucial to determine the next direction of price movement.
If Bitcoin can hold above this key level by the end of the week, it could indicate confirmation of a bullish continuation, with the potential for a major rally on the horizon. The ability to maintain this support will likely ignite renewed buying pressure, pushing Bitcoin towards higher price targets.
On the other hand, if Bitcoin fails to hold above $97,000 and closes the week below this mark, the market could face a deeper correction. This could lead to the price retesting lower demand areas, which could lead to further downside risks in the coming weeks.
The next few days are crucial, as the weekly close could set the tone for Bitcoin’s near-term price movement, with analysts closely monitoring whether this support level holds. As market sentiment remains hesitant, a decisive move above or below $97K will provide fundamental insights into Bitcoin’s future direction.
Featured image by Dall-E, chart from TradingView
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