Bitcoin has been on a roll lately, recovering nicely after a dip below $50,000. The dip was caused by a global market slump, with fears of a recession in the US playing a big part. Now, Bitcoin is hovering around $60,000, and analysts are watching closely to see if it can keep climbing.
A Warning Sign for Bitcoin Holders
One analyst, using the username tugbachain on Cryptoquant, is keeping an eye on a metric called the Short Term Holder Spent Output Profit Ratio (STH SOPR). This metric tells us whether short-term Bitcoin holders are selling at a profit or a loss.
Right now, the STH SOPR is above 1, which means short-term holders are making money. But, tugbachain warns that Bitcoin is approaching a resistance level at 1.03. If it hits that level, short-term holders might start taking profits, leading to a wave of selling that could push the price down.
Can Bitcoin Overcome the Hurdle?
However, tugbachain also believes that if there’s enough buying activity, Bitcoin could break through this resistance and continue its upward trend.
What’s Next for Bitcoin?
At the moment, Bitcoin is trading at around $60,639, up slightly for the day. However, trading volume is down.
Looking ahead, if Bitcoin breaks out of its current range, it could face major resistance around $67,000 to $70,000. On the other hand, if it drops, the next support level is around $55,000.
So, the next few days will be crucial for Bitcoin. Will it break through the resistance and continue its climb, or will it succumb to selling pressure and drop back down? Only time will tell.
