According to a recent tweet by CryptoQuant, a leading on-chain data analytics provider, Bitcoin (BTC) has grappled with long-term resistance stemming from the 2021-2022 bear market base, which lies between $29,808 and $35,078. From a technical analysis standpoint, resistance from such a bear market base is often the last hurdle before a bull run can truly take off.
The 2021-2022 bear market base is still pressing on #Bitcoin.
— CryptoQuant.com (@cryptoquant_com) October 5, 2023
"Resistance from a bear market base is historically the final frontier for scaling a bull run from a technical analysis perspective."
by @BaroVirtual
Link👇https://t.co/GBstZ0FAnc
Additionally, when delving into Bitcoin’s supply in profit, it aligns with this observation. The resistance range for Bitcoin’s supply in profit stands between 65.95% and 76.31%. This range corroborates the aforementioned resistance and suggests that the profitable supply from January 2023 onward mirrors the patterns of a bullish early top and high-profit run.
Furthermore, for those familiar with Bitcoin’s historical data, the movement of its supply in profit is strikingly similar to the periods of January-May 2012 and October 2015-May 2016. Such patterns often lead to mixed or uncertain price actions, especially until the resistance range of 65.95-76.31% is decisively breached. On the flip side, these patterns could also hint at a potential re-accumulation phase for the cryptocurrency.
BTC is currently priced at approximately $27,697.00, marking a modest increase of 0.58%. However, this figure is not the only noteworthy aspect of its recent performance. Over the past day, Bitcoin’s trading volume has dropped about 6.71%, settling at $10,380,514,875. Moreover, with a staggering market capitalization of $540,208,652,283, Bitcoin remains the top cryptocurrency, as per CoinMarketCap.
In addition to the aforementioned technical indicators, it is paramount to grasp their more expansive implications on the market at large. As a pioneering and leading cryptocurrency, Bitcoin undeniably holds a significant sway over the entire digital currency landscape. Given this dominant position, any fluctuation in its performance, the resistance levels it encounters, and its potential to embark on a bullish trajectory can have far-reaching effects on the entirety of the cryptocurrency ecosystem.
