😎 Summer Sale Exclusive - Up to 50% off AI-powered stock picks by InvestingProCLAIM SALE

Bitcoin (BTC) Eyes Major Resistance Amid Market Speculation: Details

Published 07/10/2024, 10:15 AM
Updated 07/10/2024, 02:30 PM
© Reuters.  Bitcoin (BTC) Eyes Major Resistance Amid Market Speculation: Details

U.Today - The price of Bitcoin (BTC), the biggest cryptocurrency by market capitalization, is approaching a critical test as it nears a key resistance level.

Market speculation is running high, with traders and investors closely monitoring Bitcoin's price movements, anticipating potential breakthroughs or pullbacks in the coming days.

After experiencing significant volatility in recent weeks, Bitcoin's price shows signs of stabilization, although a bigger test lies ahead for its price action. In this regard, market analysts have identified several key resistance levels that Bitcoin must overcome to sustain its upward momentum.

After dipping to lows of $54,278 in Monday's trading session, Bitcoin saw a rebound that brought it closer to a crucial resistance level that could determine its short-term trajectory.

According to crypto analyst Benjamin Cowen, the "short-term resistance for BTC is around $59,000. This is the 200 Daily SMA and would also correspond to a backtest of the trend line that BTC broke down from."

After climbing for two days at a stretch, Bitcoin retested the daily SMA 200 and briefly surpassed it, reaching highs of $59,341 in today's trading session.

At the time of writing, BTC was just up 0.83% in the last 24 hours, giving up its intraday gains as bulls confirmed resistance near the daily SMA 200.

Bitcoin short-term holders underwater

According to Glassnode, Bitcoin has seen its steepest decline since late 2022, trading below the 200DMA and causing a significant number of short-term holders to incur unrealized losses.

As spot prices fall, the ratio of investor Realized Profit to Realized Loss falls along with them. According to Glassnode, this indicator has now fallen into the 0.50 to 0.75 region, a more neutral level typically observed during bull market declines.

Looking particularly at short-term holder losses, Glassnode reported a total realized loss of more than $595 million this week, the greatest loss-taking event since the 2022 cycle bottom. Furthermore, just 52 out of 5,655 trading days (less than 1%) had a higher daily loss value, indicating the severity of the decline in dollar terms.

This article was originally published on U.Today

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.