Bitcoin investors are encountering a significant hurdle as they strive to bounce back from a recent two-month low in BTC value. The resurgence in Bitcoin price has been impeded, remaining below the $60,000 mark due to formidable resistance levels. Despite a moderate 6.2% uptick from the lows observed this week, Bitcoin has struggled to surpass critical trendlines.
Impact of Recent Price Fluctuations
During the months of April and May, Bitcoin witnessed a notable 23% dip from its peak, dampening prospects for a swift recovery. Notably, Arthur Hayes, the Co-Founder of BitMEX, has foreseen Bitcoin trading below $70,000 by August. The primary obstacle lies in eclipsing the $60,000 barrier, yet prevailing resistance zones are proving to be formidable against bullish advances.
“Reclaiming the 100-Day Moving Average would be a big deal for Bitcoin Bulls that could lead to a short squeeze,” Keith Alan noted.
The 100-day moving average (MA) for Bitcoin stands at $59,930 as of early May, serving as a crucial support level since October 2023 and offering a foundation during the initial phase of the 2023 Bitcoin bull run. Currently, the candlestick charts have dipped beneath the MA, signaling a potential downtrend. Market analysts have collectively observed that the bulls are encountering significant hurdles at the 100-day MA.
Overcoming the Short-Term Holder Realized Price
In the pursuit of recovery, Bitcoin’s price trajectory must surmount another barrier: the short-term holder realized price (STH-RP). This metric acts as a historic support line during bull markets, denoting the cumulative cost basis of Bitcoin held by traders with a speculative focus. Primarily encompassing wallets retaining BTC for 155 days or fewer, the STH-RP hit $59,684 on May 1, the most recent data point available from on-chain sources. This metric has established a fresh trendline closely linked to the $60,000 threshold.
“My personal line in the sand for ‘risk-on’ is a daily close above $61k,” highlighted Caleb Franzen, CEO of Cubic Analysts.
Experts like Franzen have integrated the STH-RP into their array of resistance levels that need to be overcome. The journey towards recovery for BTC demands substantial efforts to surmount these obstacles successfully.
