Bitcoin’s recently dipped from its high of $105,000, now trading just above $100,000. While some are worried about a bigger drop below the $100,000 mark, others see this as a healthy pause before the next climb.
Positive Signs Under the Surface
The realized price of Bitcoin (the average price all Bitcoins last traded at) is climbing, currently around $45,000. This suggests that the market is still accumulating, not overheating. Daily Realized Profit (RP) yield is also looking good, ranging from 0.10% to 0.23% daily (that’s a hefty 36-85% annualized!). The 30-day average is around 0.10% (35-40% annualized), showing consistent profit-taking without excessive speculation. All this points to a strong, healthy market.
Is the Uptrend Over? Not So Fast.
Bitcoin’s had a great run, gaining over 40% since April 9th. The current consolidation period has investors watching closely. While volatility is expected, the overall trend remains bullish. The rising realized price shows the market is still accumulating, not just driven by hype.
Chart Analysis: A Temporary Setback?
The four-hour chart shows Bitcoin hovering just above $100,000 after failing to break through $105,000. While the price is forming lower highs (meaning buying pressure is easing), the longer-term trend is still up, supported by upward-trending moving averages around $95,000-$96,000. Lower volume during this pullback suggests a correction rather than a panic sell-off. Reclaiming $103,600 would confirm the bullish trend, while a break below $100,000 could lead to a drop towards $96,000-$98,000.