Here’s Why $45,000 is the Turning Point for the Bitcoin Price Rally & Why it Needs to Achieve It
The post Here’s Why $45,000 is the Turning Point for the Bitcoin Price Rally & Why it Needs to Achieve It appeared first on Coinpedia Fintech News
The crypto space has displayed immense strength as market sentiments have gone positive following the rising hopes for the Bitcoin Spot ETF. The global crypto market cap is also soaring, heading towards $1.55 trillion as BTC dominance continues to rise. This indicates growing optimism within the markets that have kept up the momentum of the rally since the start of the fourth quarter.
The bitcoin price has been up by nearly 3% in the past 24 hours and is trading at around $41,779 after achieving new yearly highs at $42,371.75. Although the price failed to surpass the resistance at $42,480, the possibility of attaining the important levels around $45,000 rises. These levels can be treated as the threshold that may trigger a fine bull run.
Here is why sustaining above these levels is very crucial and a turning point for mid-term investors!
Ever since the BTC price surpassed $42,000 after a prolonged consolidation below $40,000, the market focus has always shifted towards the next resistance level, i.e., $45,000. These levels have significant importance not only as a technical point but also due to their resistance from a substantial segment of Bitcoin holders, as mentioned below.
Realized Price at 2-3 Years in the $45,000 range
The $45,000 mark is extremely pivotal as it represents the cost basis for investors who bought Bitcoin 2 to 3 years ago. This group of investors has maintained their position regardless of the market’s ups and downs, demonstrating strong conviction in BTC’s long-term value.
16% of supply held by 2-3 year age group
It is worth noting that 16% of all the active supply is held by these mid-term investors, who have been holding for the past 2-3 years. Their holding pattern can be considered pivotal, as their behaviour can significantly influence market trends.
33% of the realized cap represented by this cohort
Besides, 1/3rd of Bitcoin’s realised cap is held with these traders, as a significant shift in the market may be witnessed if this group decides to buy or sell Bitcoin, specifically if the price nears the break-even point at $45,000.
Therefore, a sustained breach above these levels might bolster positive market sentiments, and a failure to attain these levels may trigger substantial selling pressure.
Filed under: Bitcoin - @ December 5, 2023 6:16 am