In the recent market fluctuations, Bitcoin is trading between the resistance level of $113,000 and the support level of $110,000. Despite increasing selling pressure in the short term, investors remain cautious, waiting for a breakout signal to shape the market's next move.
Key Points
- Bitcoin is currently priced around $112,870, having pulled back from its all-time high of $124,500.
- Long-term holders (LTHs) have shown significant coin movement recently, with the Coin Days Destroyed (CDD) metric indicating a slowdown in old coin activity.
- Despite selling pressure, strong market demand is effectively offsetting some of the selling.
- Technically, a decisive break above $120,000 could reignite the upward trend.
In-Depth Analysis
According to analyst Darkfost, while Bitcoin faces short-term pressures, the long-term outlook remains optimistic. The current 30-day average Coin Days Destroyed (CDD) has decreased, indicating a reduction in long-term holder distribution. This slowdown in old coin movement suggests that the market may find room to breathe.More importantly, even with the significant release of Bitcoin by long-term holders, the price has only corrected between 10% and 13%, showcasing market resilience. Typically, an increase in old coin movements results in substantial selling pressure; however, the current demand levels seem to absorb this pressure effectively. Continued institutional inflows and strong liquidity are providing support for Bitcoin.
Market Impact
In the current environment, Bitcoin's structure remains robust. Although short-term volatility is present, sustained long-term demand may set the stage for the next upward leg. If external catalysts (such as shifts in Federal Reserve policy) boost market confidence, the current redistribution phase may serve as a healthy market reset.Investment Advice
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