According to BlockBeats, Cryptoquant analysts released a report saying that the price of Bitcoin is currently in a key psychological turning point, between optimism and pessimism. As long as Bitcoin remains in this range, it is unlikely to fall sharply.
Historical data shows that maintaining stability in this key area is essential for the continuation of the bull market. Optimism tends to rise when a large portion of the supply is profitable. Bitcoinâs current price level is testing this optimistic zone.
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. A similar move could occur if optimism remains high.
As long as Bitcoin remains within the current range, the chances of a significant price drop are low. A break below the range could turn the market sentiment towards pessimism, leading to a price drop. However, until such a breakdown occurs, the market is likely to remain optimistic.
The price of Bitcoin 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 investorsâ confidence in future price increases.
