Bitcoin’s Supply Trends Mirror 2021: What It Means for Price
Bitcoin’s price action has been fluctuating in recent days, with leading cryptocurrencies striving to secure $100,000 in corporate support. Despite multiple attempts, BTC still faces strong resistance, resulting in increased sales pressure.
Recent market conditions suggest that Bitcoin’s inability to maintain key price levels may further weaken its position, making it vulnerable to potential corrections.
Bitcoin investors are driving prices
Short-term holders (STH) play a crucial role in Bitcoin’s recent price action. The supply held by these investors indicates that the market is reflecting the accumulation phase in May 2021.
At that time, Bitcoin saw a large supply, which increased investors’ sensitivity to any downward movement. If BTC cannot maintain support above $92,500, these holders may start uninstalling their assets, increasing sales pressure.
Demand should remain stable. Bitcoin can be built New range above its all-time high. However, the lack of sustained buying pressure may trigger deeper corrections.
Historically, the post-stage has caused widespread panic among new entrants, especially those who have recently accumulated BTC at peak prices. If their holdings fall into unrealized losses, it may prompt a wave of distribution, thereby increasing the chances of price decline.
The Rhodl ratio measures the balance between the mid-term holder (6 months to 2 years) and the new entrant (1 day to 3 months). This trend suggests that short-term speculation is rising, a common indicator previously observed at the top of the market. Although this ratio has not been at a very low low yet, its current movement is consistent with the pattern seen in later stages of previous bovine cycles.
A further decline in the Rhodl ratio may mark an upcoming correction. Historically, when the ratio reaches a low point, it marks a critical turning point The price of Bitcoin cycle. If this pattern is repeated, Bitcoin can enter the distribution phase before stabilizing or starting another upward movement.
BTC prices may be difficult to gather
Bitcoin price is currently The merger is between $98,212 and $95,761, and it faces the risk of a decline. Multiple tests with lower support show that BTC is still susceptible to retesting again. If this level cannot be maintained, Bitcoin may face increased sales pressure, resulting in a decline.
Given the ongoing macro trends and STH supply allocation, the price of Bitcoin may be corrected in the near term. A drop to $93,625 is reasonable, and if bearish momentum is strengthened, BTC may drop further to $92,005. These levels can act as key support areas that affect the next market movement.
On the other hand, investors continue to accumulate for a long time Outlook can provide Bitcoin There is necessary support to break through $98,212. If BTC successfully recovers $100,000, bullish momentum may accelerate, pushing the cryptocurrency to its all-time high of $105,000.
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