According to BlockBeats, on October 9, Cryptoquant analysts released a report today. According to historical data, the price of Bitcoin is currently in a key psychological turning point, between optimism and pessimism. Market participants form optimistic or pessimistic views based on whether they are profitable. As long as Bitcoin remains in this range, it indicates that a sharp decline is unlikely.
Importance of staying optimistic: Historical data shows that maintaining stability in key areas is essential for the continuation of the bull market. Specifically, the "profitable supply" indicator, which reflects periods of investor profitability, shows that optimism tends to rise when a large portion of the supply is profitable. Bitcoin's current price level is testing this optimistic zone.
Previous Review: In past market cycles, such as the bull runs of 2016 and 2020, Bitcoin has been between psychological turning points and optimistic zones, leading to sustained price increases. When these lines persist, the market enters a strong uptrend, suggesting that similar moves could occur if optimism persists under current conditions.
Expectations of a significant drop weaken: Considering the current price action and supply indicators, as long as Bitcoin remains within this range, the likelihood of a significant price drop is low. A break below this range could turn market sentiment to pessimism, leading to a price drop. However, until such a breakdown occurs, the market is likely to remain optimistic.
Conclusion: Bitcoin’s price is at an important psychological level. Historically, when the price remains within this range, the market continues its upward trend. In order to sustain the bull market, it is crucial to maintain the optimism. If this area is held, it will strengthen investors’ confidence in future price increases.
