Bitcoin is currently trading at critical levels after a sharp drop to the $ 112,000 region, which raises panic among investors who fear this could represent the beginning of the broad bear market. After weeks of narrow monotheism, the sudden decrease raised fears of deeper correction, especially since short -term holders (STH) have to either realize losses or keep underwater sites.
Related reading
However, not all analysts need the alarm. Axel Adler analysts argue that although the market suffers from the behavior of the late bull cycle in the late stage, the broader upward trend is still intact. Adler notes that with the maturity of the bull markets, the appetite of the risk invested naturally decreases, which increases the attraction of profits and the pressure pressure in the short term. This creates temporary opposite winds, but does not necessarily indicate the reflection of the direction.
Their holders remain in the long term (LTH) in a strong profit area, and no signs of surrender appear. Their conviction continues to provide foundation support for the Bitcoin price structure. This is a normal stage in the bull markets, as the short -term volatility exceeds the weakest hands before continuing.
NUPL and MVRV compulsory cycle ripening cycle
According to Edler, Bitcoin Al -Tawafiq Intended From NUPL (net profit/unveiled loss) and MVRV (the market value of the achieved value) reveals a clear shift in the investor’s behavior with the maturity of the bull cycle. Adler data shows that in March and December 2024, this common scale reached its climax above 1.9, which represents periods of condemnation of the strong market as investors continued to keep it despite the high profit margins.
However, current readings show a remarkable decrease, with the formation of the average consensus with a lower summit, indicating that their holders have become more inclined to achieve profits instead of keeping them by increasing new prices. Adler notes that each gathering now carries a smaller marginal allowance based on the cost of the holders, which translates into increased pressure pressure as it struggles the market to maintain higher reviews.
This does not mean that the bull market has ended, but it indicates that the appetite of the investor risk is decreasing. The profit achievement activity gradually outperforms the flow of new demand, which can stimulate future marches.
However, Adler expects two more important paths in this course, driven by Macro stimuli such as federal reserve price discounts expected later this year. These events can govern the market momentum and pushing bitcoin to new levels. However, Adler warns that after these final payments, pressure may exceed long -term new demand, leading to the market to a wider correction stage.
Related reading
Price analysis: Resistance test after collapse
Bitcoin (BTC) is currently trading at 114,690 dollars, in an attempt to recover after a sharp collapse than $ 115,724, and is now operating as resistance. The BTC daily chart shows a modest recovery after reaching the lowest local level of $ 112,200, with a standardization of prices around the simple moving average for 50 days (SMA) at 112,218 dollars. This moving average provided strong support during the last correction, which prevents a deeper decrease towards a region of $ 110,000.
The next critical level of watching is the resistance of $ 115,724. The daily closure above this level would indicate a potential restoration of the previous domain, which increases the possibility of re -testing of a height of $ 122.077. However, if BTC fails to break this level convincingly, this may indicate that the bears are still in control, which leads to a possible re -test of SMA support for 50 days.
Related reading
The size remains defeated compared to the previous gatherings, indicating that there is no strong purchase momentum. SMA for 100 days at 107,926 dollars and SMA for 200 days at 99,345 dollars The main dynamic support levels should still show negative pressure.
Distinctive image from Dall-E, the tradingView graph
The post Bitcoin Investors Selling More Aggressively As Bull Cycle Matures: Risk Appetite Fades? first appeared on Investorempires.com.
