The post Bitcoin Price in a Crucial Zone: Holder Analysis Offers Directional Insights appeared on BitcoinEthereumNews.com.

Bitcoin price has been oscillating within the $105,000 price range for a couple of days now. While its performance may indicate strength against the downside, it also highlights a retest of BTC’s previous top zone. Bitcoin Price Duality The retest may manifest some resistance, which could potentially trigger some sell pressure. On the other hand, a demand resurgence could pave the way for more price discovery. This duality of potential outcomes highlights the growing uncertainty. However, there are some interesting market observations that could offer more clarity on Bitcoin’s next possible move. Bitcoin exchange reserves have maintained a downward trajectory and are currently at a multi-year low. There were roughly 2.334 million Bitcoins on exchanges at the time of observation. The last time that exchange reserves were this low was in 2018. Bitcoin exchange reserves | Source: CryptoQuant The declining Bitcoin exchange reserves underscore the possibility of a supply crunch if demand is sustained. Such an outcome could trigger the next bullish wave, possibly sending Bitcoin price above $110,000. Major Bitcoin Holders Maintain Bullish Resolve HODL for longer appears to be the current name of the game among the big players in Bitcoin. This is what a recent CryptoQuant analysis revealed recently, based on the SOPR ratio assessment. – Advertisement – The analysis noted that the Bitcoin SOPR ratio demonstrated higher growth in the previous major bull runs. In other words, the SOPR ratio has been hitting lower highs compared to previous bull runs. It also theorized that the lower SOPR ratio, especially in the current bull run, underscores the growing shift from a short-term profit strategy. Many have been adding Bitcoin to their portfolios as long-term assets. The CryptoQuant analysis stated that the shifting investor dynamics may have contributed greatly to lower exchange reserves. It signals that investors, especially…

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Filed under: News - @ January 28, 2025 2:26 am