Bitcoin‘s value recently soared past the $70,000 mark, setting a fresh record high. This surge sparked discussions among investors about the rally’s sustainability. However, a slight downturn has been observed, with the cryptocurrency now trading around $68,500 and a market capitalization of $1.325 trillion.
Struggle for Market Dominance
Renowned crypto analyst CrediBULL Crypto identified a significant struggle within the Bitcoin market: the clash between spot market buyers and long-term holders who are selling passively. Despite a considerable $700 million poured into the market by spot buyers, the cryptocurrency’s ascent was hindered by these sellers.
CrediBULL Crypto pondered which group might exhaust their arsenal first—the active buyers or the passive sellers. Should buyers persist and surpass seller resistance, the market could witness a substantial price leap. The bullish case is bolstered by strong buying in Bitcoin ETFs, such as BlackRock’s IBIT.
Conversely, a seller-dominated market might lead to a decline, albeit a capped one due to low leverage ratios and a lack of open positions, signaling a reduced risk of steep drops and major liquidations.
Duration of Bitcoin’s Ascendancy
CryptoQuant, an esteemed on-chain analytics provider, referenced Bitcoin’s Adjusted Output Profit Ratio (aSOPR) to gauge the duration of its growth phases, which fluctuate from 83 to 387 days. They predict the current uptrend could sustain for approximately 138 days, suggesting a potential peak in the next 100-150 days. Post-growth cycle, other cryptocurrencies might see a surge, analysts surmise.