Earlier this week, Bitcoin fell back to $90,000 before rebounding strongly to break through the $95,000 mark.
Bitcoin is currently trading at $95,224, having gained 7% in the past two weeks, signaling renewed bullish momentum.
Key indicators highlight best buying opportunities
As Bitcoin continues to rise, well-known on-chain analytics platform CryptoQuant shared insights on key indicators that can help potential investors determine the best entry point.
CryptoQuant uses historical data and market behavior to highlight price correction patterns, short-term holding strategies, speculative bets, and volume indicators to guide investors through Bitcoin's ongoing bull run.
According to CryptoQuant, historical bull runs show that price drops are inevitable even during periods of sustained growth.
For example, the 2017 bull run saw corrections of up to 22%, while the 2021 rally saw declines of 10% and 30%. The 2024 bull run has seen price corrections of 15% and 20%, suggesting that periodic pullbacks could offer strategic buying opportunities.
The platform also highlights the importance of the short-term holder realized price indicator, which reflects the average cost basis of recent investors. This indicator often acts as a key support level during bull markets because short-term holders are more likely to buy at breakeven prices, thereby enhancing price stability.
Buy at the average cost basis of short-term holders
The short-term holders realized price can be considered as a buy-on-dip level during the bull market.
Investors tend to buy at the breakeven price, which makes this indicator a visualization of price support.
Additionally, CryptoQuant points to the phenomenon of “open interest surges,” where speculative positions are liquidated during periods of heightened price action. This process can create favorable entry points for investors looking to take advantage of temporary market resets.
Finally, the net take indicator, which measures the balance of buying and selling pressure, suggests that peak selling activity could signal opportunities for future price increases.
According to recent data from CryptoQuant, a reading below -$30,000,000 could indicate that sellers are approaching exhaustion, paving the way for a potential rally.
Bitcoin’s key support levels
While Bitcoin’s current momentum suggests another possible rally, analysts warn that it will be important to maintain key support levels. Cryptocurrency analyst Ali recently identified the $93,580 price range as a key demand level, with about 667,000 addresses purchasing a total of nearly 504,000 BTC.
Analysts say staying above this level is crucial to avoid a potential sell-off by holders at this price point.
A key demand area for#Bitcoinis $93,580 where 667,000 addresses bought nearly $504,000 in BTC. Staying above this support is a must to prevent these holders from selling!
