BTC have been struggling to complete the 25K USD level. However, some on-chain analysis tells that their pushback just at the key price level can be a fragment of Bitcoin’s transition from the bearish trends.
There is a underlying current of rumors about BTC reclaiming its throne in the crypto market. Currently BTC is threatening towards a retest of the strike by the short sellers. There are some analyst opinions that speak positively about the drop as they believe this drop could again touch the 19K mark.
Bitcoin Prices Entering The Traditional Phase:
Market players’ worries about interest rate increases by the Federal Reserve and rising inflation are significant macro headwinds for Bitcoin, and as a result, investors are considering the TVM of their BTC investments. Bitcoin holders may be divided into groups depending on the length of time they have owned BTC and the average purchase cost to calculate TVM on-chain.
Investors who bought bitcoin over the previous six months profited from the early bear market circumstances and are now in the black thanks to an average realized price of $21K. All BTC holders’ average market realized price, which is now positive, is $19.8K.
On the other hand, BTC, which has been kept for more than six months, has a greater realized price than the other market groupings. The holders who haven’t seen much TVM return in more than six months may put pressure on a breakthrough when Bitcoin rises beyond $23,500 since they’re anxious to lock in profits.
The price of BTC is quite sensitive to changes in interest rates and the US Dollar Index (DXY), which puts pressure on risky investments. These characteristics’ detrimental effects favor short sellers but are detrimental to Bitcoin. The market’s entry of fresh long liquidity and spot buyers will help BTC best resist pressure from short-sellers.
