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With a recent pullback from the $110,000 mark, which Bitcoin retested last Wednesday, the flagship asset has witnessed a persistent decline to the $104,000 support level. BTC’s sharp decline appears to have triggered bearish sentiment across the sector, but the broader market sentiment is still bullish.
BTC Bullish Market Outlook Still Intact
Bitcoin has revisited the $104,000 price level as bearish pressure mounts within the crypto market. However, despite recent growing volatility, BTC is still trading above a critical price level that characterises negative danger from bullish momentum.
Specifically, this key level is considered as short-term holders’ realized price, which is currently located in the $98,300 range. This crucial level, which is widely monitored by short-term traders, has historically supported sustained upward trends and indicated market strength despite broader macro uncertainty.
According to Alphractal, an advanced on-chain data and investment platform, the $98,300 is “the last level keeping investors in profit,” as BTC’s waning price action extends. As long as the flagship asset stays above the critical short-term holders’ realized price, the on-chain platform is confident that the BTC bull market is not over yet.
BTC holding above STH realized price | Source: Alphractal on X
Such a claim suggests that Bitcoin is still stable, exhibiting minimal volatility, and still has more room to grow. Nonetheless, the only way the situation can be altered is if Bitcoin’s price aggressively drops below the $98,000 mark, which may lead to a more significant decline in the short term.
Thus far, Alphractal noted that it would be wise to place a stop loss slightly below $98,000. Since BTC’s position above this level hints at a sustained bull market, it implies that investors do not see the current decline as the start of a downturn, but rather as a healthy consolidation phase.
Selling Pressure From Bitcoin Short-Term Holders Is Diminishing
This sentiment is also reflected in the Bitcoin Buy/Sell Pressure Delta, a key metric that determines whether buying or selling activity is currently dominating the market. After examining the metric, Alphractal has highlighted a positive development among short-term investors.
In the report shared on X, the on-chain platform revealed that selling pressure on BTC from short-term holders has risen to an oversold region. Alphractal claims that the trend is typically a sign of a pause in the ongoing decline in BTC’s price, while the oversold condition offers a new buying opportunity for traders anticipating a possible rebound from present price levels.
To put it differently, this notable shift in behavior implies that the current surge of panic selling and profit-taking carried out by these investors is wearing itself out. With selling pressure dying down among short-term Bitcoin holders, it could indicate a potential impending rebound, with key levels like the STH Realized Price holding strong against bearish attempts.
BTC trading at $104,838 on the 1D chart | Source: BTCUSDT on Tradingview.com
Featured image from Pixabay, chart from Tradingview.com
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