Bitcoin’s price has seen a surge above $67,000 after softer CPI data last week. Analysts have differing opinions on the next move for Bitcoin, with some believing the correction is over and it will reach a new all-time high, while others expect a drop to retest the $60,000 support level. On-chain data suggests a potential support level at $61.5K, based on the Short-Term Holder (STH) realized price. This comes as Bitcoin’s current trading price is around $67,000, narrowing the gap observed earlier in the year.
Bitcoin’s dominance in the market is approaching a local peak, as indicated by a descending trend line that has consistently acted as strong resistance since 2017. An increase in Bitcoin dominance usually signals a shift in market trends as investors seek higher returns in altcoins. Currently, Bitcoin dominance stands at 55.8%, showing a slight decrease of 0.12%. Noted trader Daan Crypto Trades highlights the $72,000 mark as a significant resistance zone.
Despite surpassing resistance levels around $67.4K, Bitcoin still faces strong levels around $68K and the most substantial liquidity is found at and beyond the $72K mark. Analyst Rekt Capital suggests that Bitcoin is only 1% away from initiating a new phase in the bull market. CryptoQuant’s STH realized chart indicates $61.5K as the new support floor for Bitcoin’s price. This metric is crucial for determining market bottoms or potential reversal zones.
The narrowing gap between the STH realized price and the actual market price of Bitcoin, which was as high as $9K in early April, has now tightened to $5.09K, suggesting a consolidation phase that could establish $61.5K as a strong support level. This tightening coincides with a shift in market share from long-term holders to short-term holders, indicating increased activity from newer participants. The stability of the $61.5K level is crucial, as it could boost investor confidence and support a positive short-term outlook for Bitcoin. However, if it fails to hold, it could indicate a loss of confidence and become a strong resistance level.
