According to the report published by the cryptocurrency analysis company CryptoQuant, after the price of Bitcoin reached the 200-day moving average of $82,400, it encountered selling pressure and completed its short-term rise with losses. This level has historically been known as “major bear market resistance” and similar contacts have seen price pullbacks in the past.
Bear Market Resistance is Back on the Agenda
Bitcoin, which has been gaining value for about six weeks since the beginning of April, attracted attention with its rise from $ 66,000. However, the CryptoQuant report reminded that the 200-day average serves as an important resistance, especially in the bear market in 2022. At that time, Bitcoin lost value rapidly after reaching this level.
The report also asks, “Will the current outlook repeat history?” The question was highlighted and the price movements of two years ago were compared with the current chart. Many traders predict that there may be a new rise in Bitcoin if the CLARITY bill, which has been pending in the US Senate for a long time, is implemented. On the other hand, CryptoQuant data pointed to an opposite picture in the short term.
In CryptoQuant’s assessment, as of May 5, the unrealized profit margin of Bitcoin investors increased to 17.7%, reaching the highest level since June 2023. The company interpreted this increase as a signal that profit sales pressure may become stronger.
Selling Pressure and Profit Realizations in Prices
In the analysis, it was stated that in March 2022, Bitcoin reached similar profit margin levels within the 200-day average theme, followed by a sharp decline. In the last 24 hours, Bitcoin price decreased by 2.3% to $ 79,300.
This decline came after the interest in risky assets increased for a short time as tensions in the Middle East eased. At the same time, according to data released by the US Department of Labor, producer prices increased by 1.4% in April, the fastest increase in the last four years. This data showed that inflation concerns remained alive.
However, according to CryptoQuant’s report, the daily profit amount on May 4 reached the highest level since the beginning of December. That day, a total of 14,600 Bitcoins were converted into cash; The value of this amount was approximately 1.2 billion dollars.
CryptoQuant emphasized that intense profit taking and such increases seen during bear market rallies generally indicate short-term peaks.
The analysis firm stated that if the decline in prices continues, the $ 70,000 level stands out as support. This level represents Bitcoin’s last trading average and short-term investors’ cost basis. As the profit margin here decreases, sales pressure is expected to ease.
Market Expectations and Different Approaches
Expert opinions on Bitcoin’s movements also differed. MN Capital founder Michaël van de Poppe, in his analysis shared on social media, argued that if there is progress in the bill regarding crypto assets in the US Senate, Bitcoin can reach $ 90,000 very quickly.
Additionally, Arthur Hayes, investment director of crypto fund Maelstrom, expressed the view that Bitcoin reaching its all-time high of $126,000 is inevitable. According to Hayes, due to the risk of war in Iran and the escalation of artificial intelligence competition between the USA and China, an increase in the money supply is expected, and in this environment, the prediction that investors will turn to Bitcoin has come to the fore.
On the other hand, interest from the traditional financial world is also increasing and Bitcoin’s price movements are becoming more sensitive to the US economy. CryptoAppsy According to data, the current price of Bitcoin is trading at $ 79,300.
