BTC Price Bounces at Key Support, Igniting 2023 Bull Market

Bitcoin (BTC) could experience relief from the selling pressure it has been facing as traders’ profit margins approach zero. Julio Moreno, head of research at CryptoQuant, noted that Bitcoin traders have reached the breakeven point on their holdings at $60,000, indicating a potential turning point for the price. Short-term holders (STHs), who own Bitcoin for 155 days or less, have exhausted profitable trades, suggesting that selling may decrease to avoid losses. The realized price for traders has historically acted as support during bull markets, currently standing at around $60,000. While there have been retracements from all-time highs, which is a normal occurrence, the recent dip below $60,000 was the only significant one since the price began retracing in March.

The returns to STHs’ realized price have often marked market bottoms and have consistently supported the market since the end of the 2022 bear market, with the exception of a brief period in August last year. On April 18, Bitcoin experienced a relief bounce, reaching $64,182 on Bitstamp. Analysts note that the current pullback is deep, at around -18%, and has lasted for 10 days, making it close to bargain-buying territory based on previous cycles. It is still a relatively short retracement compared to previous ones, which have lasted 2-3 weeks or even up to two months. Confidence in a full recovery would require more evidence of spot demand.