The market situation for Bitcoin reflects a fragile balance, bearing an unsettling resemblance to the dynamics observed in early 2022, analysts warn. The price of the main cryptocurrency has fallen below a critical technical threshold—the 0.75 supply quantile, which corresponds to a price of US $95,800 ($95.8K). The consequence of this is that over 25% of the asset's total supply is now experiencing unrealized losses ("underwater"). The market currently finds itself in a tense waiting game, characterized by a standoff between the potential capitulation of the largest holders (top-holders) and possible seller exhaustion near the $93K mark, reports The WP Times with reference to Telegram.
Despite significant price swings, BTC remains extremely vulnerable to further declines due to sluggish demand. Weakness is clearly evident across the Exchange Traded Fund (ETF) sector, the spot market, and the futures market. Furthermore, low volatility in the options market indicates investor caution. Analysts emphasize that for stability to return and for Bitcoin to transition into a growth phase, it must definitively reclaim two technically important levels: the 0.75 quantile ($95.8K) and the 0.85 supply quantile, the latter of which is situated near a price of US $106,200 (~$106.2K).
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