Bitcoin UTXO Profit/Loss Ratio Sits Below Critical Levels – How Long Until BTC Overheats?

Bitcoin is about to enter an unknown area after a mark of $ 108,000 for a short period earlier today. The leading cryptocurrency has increased more than 40 % since early April, and is fueled by market optimism and institutional demand. However, the price shows the frequency near its highest level (ATH), which is now working to integrate about $ 106,000. This main level is a psychological resistance and barrier, creating mixed spirits throughout the market.

While many analysts remain up, they call for outbreaks that can take Bitcoin in the discovery of prices, others warn of early euphoria, indicating the possibility of sharp restoration if the momentum is scattered. The higher analyst Axel Adler has shared visions that suggest that every powerful prices convert a large size of metal currencies from losing to profit, an event that usually drives to the SMA average (SMA) from the profit ratio to the UTXO loss higher than 200. This level has been identified historically under the excessive, historically planned conditions.

As of now, the scale sits in 99, indicating that the market has not yet entered a stage of high temperature. This indicates that Bitcoin still has a running room before the feelings become excessive, leaving the door open for more bullish trend – or decisive rejection.

Momentum or correction? The main scale suggests that Bitcoin still has an operating room

This is a pivotal week for bitcoin and the entire encryption market, with the determination of price movement to determine the direction of the coming weeks. After reaching a brand of $ 107,000 on Sunday, Bitcoin was quickly rejected, more than 4 % recovered and settled about 106,000 dollars. This fake highlighted the fragility of the market near the high area (ATH) at all. The clean interruption that exceeds 109,000 dollars would confirm the continued strong upward trend that started in 2023. But if Bitcoin loses the current levels and reduces the main demand, this may lead to deeper correction, and shake the conviction of ascension.

Adler presented a major vision In market morale by analyzing the profit ratio to UTXO loss. Historically, every strong acceleration in prices that quickly turns from metal currencies from losing to profit leads to a simple moving average for 30 days (SMA) for this measure of the height above 200, indicating a high temperature and often indicates the beginning of the distribution stage. Nowadays, SMA is located at 99, much lower than the warning threshold, indicating that there are no signs of surplus so far.

Adler notes that while Bitcoin still has a room for growth, “easy fuel” behind recent gains fade. A much stronger payment or more volatile actions will be needed to push the scale up. Interestingly, this corresponds to a larger style – the third pressure phase of the course. If the analogy continues, this spring may be released soon with strong energy enough to send Bitcoin beyond ATH, but the risk of rejection remains very real.

Technical Analysis: Main weekly prices

Bitcoin is trading at $ 106,394 after reaching the highest local level of $ 108.035 earlier today. The BTC chart, which exceeds the level of penetration of $ 103,600, is now appears as a strong support area. The price of the price emphasizes the bullish structure, as the highest levels and lower levels are formed over the past few weeks. SMA remains for 200 days at 93,186 dollars and EMA for 200 days at 88,855 dollars much lower than the current price, which enhances the strength of the continuous upward trend.

However, the price is now unified is now less than its highest level ever, with a clear resistance near the level of $ 109,000. This region represents a decisive test of bulls. The breaking over it will confirm the transition to the discovery of prices and may lead to a wave of purchase of momentum. On the other hand, failure to pressure upwards to re -test $ 103,600 or even the psychological level of $ 100,000.

The size remained moderate despite the last gathering, indicating that strong penetration will require higher participation. The structure is currently similar to a high unification area, and is often an introduction to a volatile movement. The bulls remain in control at the present time, but any decrease less than 103,600 dollars will weaken the momentum in the short term and may lead to a wider decline. All eyes remain on the BTC behavior around the ATH region.

Distinctive image from Dall-E, the tradingView graph

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