Glassnode, an analytics platform, outlines the potential path for Bitcoin (BTC), amid a period where profit-taking has been intense.
The analytics platform reports that Bitcoin has been facing increasing resistance since it reached a record high in the last month.
According to Glassnode, the resistance is due to the exhaustion of longtime Bitcoin investors and buyers who bought earlier.
In the short-term, the increasing profit taking could indicate a new breakout and not an intensifying distribution phase.
The market is at a critical crossroads. It’s characterized by heightened sell pressure, maturing momentum and a demand that needs to prove its resilience. In the coming weeks, it will be important to determine whether or not this is mid-cycle consolidation.
Glassnode reports that the market has entered the fifth wave of profit taking in this cycle. The realized profits have risen from $1.47 billion to over $1.475 billion per day.
The most significant selling pressure came from those who had accumulated in key historical ranges, such as $25,000-$31,000 and $60,00-$73,000. The groups that have held for multiple volatility periods are contributing to the overhang of supply, which appears to be limiting further gains, at least short-term .”
According to analytics platform, the continued pressure of long-term investors is increasing the risks for a correction in the short term. According to Glassnode the first Bitcoin on-chain price support zone is about $103,700. The second is somewhere around $95,600. Glassnode claims that if the second zone is breached it may be an indication of a “wider risk reset.”
Bitcoin currently trades at $105,007 as of the time this article was written.
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Sources of Images include Pixabay Creative Commons & Midjourney
The post Bitcoin at Crossroads amidst Increased Sales Pressure, Warns Glassnode Analytics Platform – Here is the Firm’s Outlook can be updated as new information becomes available.
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