Bitcoin’s market is on the verge of a critical psychological level, as highlighted by CryptoQuant and DataScope market analysis. Bitcoin is moving in an important range that has been defined as pivotal for market sentiment in the past.
#Bitcoin at a Critical Psychological Turning Point“Bitcoin’s price is sitting at a psychologically important level. Historically, when prices stayed within this range, the market continued its upward trend.” – By @0xDataScope Read more https://t.co/q6FzjuhRHS pic.twitter.com/ouZIuztaJd
— CryptoQuant.com (@cryptoquant_com) October 9, 2024
A Critical Psychological Turning Point
As per analysis provided by DataScope & CryptoQuant, Bitcoin is very close to the psychological turning point, which is typically proven to be very important given that its stable price has triggered positive market trends. The assessment draws on a historical pattern that mainly focuses on price history and investigates the moments when the BTC price hovered between the ‘line of optimism/pessimism’ and ‘psychological inflection line’ as identified on BTC Supply in Profit Market Bands.
In previous cycles, like the bull runs in 2016 and 2020, the BTC price was contained within this range, which made investors optimistic. This optimism brought upward momentum in price. Historical evidence shows that a bull run could follow as long as the cryptocurrency stays in this range.
Supply in Profit Metric: A Key Indicator for Bitcoin
At the heart of this analysis is the “Supply in Profit,” which is the percentage of Bitcoin currently in profit addresses. The metric correlates with periods of bullish sentiment, as a higher rate of profitable holdings typically results in greater market confidence.
CryptoQuant charts show Bitcoin’s price since 2014 and three zones where the digital currency has continued to rally after testing this psychological zone of optimism. Such earlier experiences suggest that the present market might likewise attain a similar surge.
Although there has been some fluctuation recently and the current issues with macroeconomic indicators worldwide, DataScope derived that the probability of a sharp decrease in the price is unattainable if Bitcoin stays within this desired range. Going lower than this level may lead to market sentiment moving to the negative side and may result in decreasing prices.
Could History Repeat Itself?
As the price of BTC tests critical levels and with optimism slowly growing, there are many investors eager to see a new rally. Price data from the past indicates that bullish movement could be likely if Bitcoin does not fall below this psychologically significant zone. If this region remains intact, investor confidence is expected to rise, thus boosting Bitcoin prices over the next few months.
According to CryptoQuant and DataScope, the upcoming weeks will determine Bitcoin’s price level. If cryptocurrency can sustain itself, the general market will appear to be in a position for another round of bullish runs.
