According to U.Today, Bitcoin, the largest cryptocurrency by market capitalization, is nearing a crucial test as it approaches a significant resistance level. Market speculation is rampant, with traders and investors keenly observing Bitcoin's price movements, expecting potential breakthroughs or pullbacks in the near future. Despite considerable volatility in recent weeks, Bitcoin's price appears to be stabilizing, but a more significant test awaits its price action.
Market analysts have pinpointed several key resistance levels that Bitcoin must surpass to maintain its upward momentum. After dropping to lows of $54,278 in Monday's trading session, Bitcoin experienced a rebound that brought it nearer to a critical resistance level that could dictate its short-term trajectory. Crypto analyst Benjamin Cowen stated that the 'short-term resistance for BTC is around $59,000. This is the 200 Daily SMA and would also correspond to a backtest of the trend line that BTC broke down from.'
After two consecutive days of climbing, Bitcoin retested the daily SMA 200 and briefly exceeded it, hitting highs of $59,341 in today's trading session. At the time of writing, BTC had risen just 0.83% in the last 24 hours, surrendering its intraday gains as bulls confirmed resistance near the daily SMA 200.
According to Glassnode, Bitcoin has experienced its steepest decline since late 2022, trading below the 200DMA and resulting in a significant number of short-term holders suffering unrealized losses. As spot prices decrease, the ratio of investor Realized Profit to Realized Loss also falls. Glassnode reports that this indicator has now dropped into the 0.50 to 0.75 region, a more neutral level typically seen during bull market downturns. Focusing specifically on short-term holder losses, Glassnode reported a total realized loss of over $595 million this week, the largest loss-taking event since the 2022 cycle bottom. Moreover, only 52 out of 5,655 trading days (less than 1%) had a higher daily loss value, highlighting the severity of the decline in dollar terms.
