Bitcoin’s network fundamentals have continued to explode this year. The price side of things, however, has been disappointing recently. With its stagnating since mid-March, concerns about possible downside targets stretching toward $20,000 have emerged.
Despite some encouraging signs in recent months, Bitcoin’s latest retreat dragged its price below $27,000.
Bitcoin’s Key Support Areas
As the world’s largest cryptocurrency remained trapped in a narrow range below $30k, Glassnode observed that the spot price remains in close proximity to three significant pricing levels, “providing robust support around the $25,300 – $26,300 region.” The levels in question are:
- Short-Term Holder Cost-Basis: $26,000
- Adjusted Realized Price: $25,300
- 200 WMA: $26,300
According to Glassnode’s analysis, sustained elevation above these crucial support areas can be deemed as a constructive sign. On the other hand, a drop in Bitcoin’s price beneath the key levels would infer a weakness in the trend.
The latest data surfaces after the crypto-analytic platform’s co-founder Negentropic hinted that the current tight-range consolidation could potentially be nearing an end, implying that BTC will soon hit its bottom and subsequently flip positive.
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Moreover, the conviction among the existing BTC holders was found to be “remarkably high.” Such a trend can be counted as bullish, despite the crypto-asset’s slow growth this quarter. This is because such a trend potentially signifies that investors consider the current market condition to be an opportunity.
More recently, the exec stated that FOMC is likely to prove a major catalyst that will drive Bitcoin’s price.
“More chop is expected until ~1 week before FOMC. Keep a close eye on open interest to see how the market is positioning (there is any positioning) going into June 14.”
Transition Phase
Bitcoin appears to have reached a “transition,” which should set the stage for the next bull market top, according to Glassnode’s new research. The long-term investors of the premier crypto-asset are preparing for gains in the near term.
The company found that Bitcoin long-term holders (LTHs) – those hodling BTC for at least 155 days – have started a transition toward a state of “equilibrium” before reaching full “euphoria,” which typically means that this cohort is preparing for the next BTC price cycle top.
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