Bitcoin Price Recovers Near Support, Fueling The Bull Market Of 2023

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The urge to sell Bitcoin BTCUSD may ease as a result of dealers’ profit margins reaching “virtually zero.”

Julio Moreno, head of research at on-chain analytics platform CryptoQuant, predicted a potential bottoming point in the price of Bitcoin in an analysis that was posted on X (previously Twitter) on April 18.

Bitcoin Traders Reach The Sand Line For Profit Margins

A week of BTC price declines has crushed Bitcoin and cryptocurrency traders, but a major reset is about to happen. Data from CryptoQuant indicates that traders have brought their exchange holdings back to the breakeven threshold at $60,000. Moreno summed up, saying, “BTC selling pressure from traders may be declining as unrealized profit margins are zero now.” Profit/loss was displayed on an accompanying chart for short-term holders (STHs), or Bitcoin companies that have owned BTC for 155 days or less. These speculators appear to have exhausted their winning deals, indicating that a reduction in sales may be necessary to prevent losses.

“Traders’ realized price (pink line), which is currently at about $60K, has acted as support for prices during a bull market,” Moreno continued. Since BTCUSD started retracing from fresh all-time highs in March, there has only been one short drop below $60,000. These retracements are typical when all-time highs are broken, as Cointelegraph noted. The unexpected new peak that occurred before to this week’s block subsidy halving raised hopes for a BTC price drop.