Bitcoin's price has struggled to stay above the $100k mark, raising concerns in the investor community. This article explores the key factors affecting the current state of the cryptocurrency market.
The Importance of $100k for Bitcoin
CryptoQuant analyst, known as Crazzy, highlights the significance of the $100k level for Bitcoin. This mark is crucial for short-term holders striving for profit. Currently, investors face a 3% loss, while those holding Bitcoin for less than six months see their margins drop from 30% to 7%.
Possibility of Price Recovery
Despite current struggles, analysts from AMBCrypto believe Bitcoin is undergoing a healthy retracement before potential growth. The supply of Bitcoin held by long-term holders is steadily increasing, indicating a lack of panic selling. The long-term holder SOPR remains above 1, pointing to a slowdown in profit-taking.
Ongoing Market Trends
Current market conditions show a continued decline in selling pressure from active participants. Decreasing exchange inflows further support this trend, indicating confidence among long-term holders, while short-term ones are experiencing losses or minimal profits.
To maintain a bullish outlook, Bitcoin must reclaim and surpass the psychological $100k barrier, potentially restoring market confidence.
