- BTC’s price and supply in profit are stuck within resistance ranges.
- For the coin’s price to grow, these ranges have to be breached.
At its current price levels, the value of leading coin Bitcoin [BTC] remains stuck at its 2021-2022 bear market base, pseudonymous CryptoQuant analyst BaroVirtual has noted in a new report.
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According to the analyst, BTC has faced “long-term resistance” at the $29,808-$35,078 price range. This price level was where the king coin bottomed out during the bear market of 2021-2022, and in the current market cycle, it has become a very difficult range for the coin to break through.
BaroVirtual added further that a factor contributing to BTC’s current price oscillation is the amount of the coin’s supply held in profit. Regarding this, the analyst drew a parallel between the current price action and what happened during the early stages of bull markets in 2012 and 2016.
BaroVirtual noted,
“The movement of supply in profit is conceptually reminiscent of the periods of January-May 2012 and October 2015-May 2016.”
By this, the analyst meant that the amount of BTC that is currently in profit is at a level that is similar to what it was during the early stages of bull markets in 2012 and 2016.
Confirming that BTC’s supply in profit is also stuck in a tight range, BaroVirtual said:
“At the same time, the long-term resistance of Bitcoin’s supply in profit (%) corresponds to the range of 65.95-76.31…”
Source: CryptoQuant
What this means
This could mean that a lot of people are holding the coins that they bought at a lower price, and they are waiting to sell at a higher profit.
This could prevent BTC from breaking through the bear market base because investors who already hold at a profit are looking to sell for more profit.
Read Bitcoin’s [BTC] price prediction 2023-24
For the coin’s price to grow, it has to break through the 65.95-76.31 resistance range. According to the analyst:
“Contradictory or uncertain Bitcoin price action will likely be present until it successfully breaks the 65.95-76.31 resistance range. On the other hand, the above may indicate re-accumulation.”
This connotes that BTC’s price direction might remain unclear until it breaches this resistance range or it undergoes a period of accumulation where investors purchase more of the asset.