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Bitcoin (BTC) Eyes Strong Resistance Amid Market Speculation: U.Today Details
U.Today – The price of (BTC), the largest cryptocurrency by market cap, is approaching a critical test as it approaches a key resistance level.
Market speculation is high, with traders and investors closely monitoring Bitcoin price movements, predicting potential upside or downside in the coming days.
After experiencing significant volatility in recent weeks, the price of Bitcoin is showing signs of stabilizing, although a bigger test awaits its price action. In this regard, market analysts have identified several key resistance levels that Bitcoin must overcome to sustain its upward momentum.
After falling to lows of $54,278 in Monday’s trading session, Bitcoin saw a bounce that brought it closer to a crucial resistance level that could determine its near-term trajectory.
According to cryptocurrency analyst Benjamin Cowen, “near-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 from which BTC has fallen.”
After two consecutive days of gains, Bitcoin retested the 200 daily SMA and briefly surpassed it, reaching highs of $59,341 in today’s trading session.
At the time of writing, BTC had risen just 0.83% over the past 24 hours, giving up daily gains as bulls confirmed resistance near the 200 daily SMA.
Short-Term Bitcoin Holders Are Underwater
According to Glassnode, Bitcoin has seen its steepest decline since late 2022, trading below its 200-day moving average and causing a significant number of short-term holders to suffer unrealized losses.
As spot prices fall, the ratio of an investor’s Realized Profit to Realized Loss falls along with them. According to Glassnode, this indicator has now fallen to the 0.50-0.75 region, a more neutral level usually seen during bull market declines.
Considering short-term losses of holders in particular, Glassnode reported a total realized loss of over $595 million this week, the largest loss event since the 2022 cycle low. Furthermore, only 52 of the 5,655 trading days (less than 1%) had a higher daily loss value, indicating the severity of the decline in dollar terms.