- BTC price and profit supply remain within resistance ranges.
- For the price of the coin to grow, these margins must be exceeded.
At the current price level, the value of the leading currency Bitcoin has increased [BTC] remains stuck at bear market base for 2021-2022, pseudonymous CryptoQuant analyst BaroVirtual has noted in a new report.
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According to the analyst, BTC has faced “long-term resistance” in the price range of $29,808-$35,078. This price level was the king coin’s low point during the 2021-2022 bear market, and in the current market cycle it has become a very difficult range for the coin to break through.
BaroVirtual further added that one factor contributing to BTC’s current price fluctuations is the amount of the coin’s supply that is being retained as profit. In this regard, the analyst drew a parallel between the current price action and what happened during the early stages of the bull markets in 2012 and 2016.
BaroVirtual commented:
“The movement of supply in earnings is conceptually reminiscent of the periods January-May 2012 and October 2015-May 2016.”
By this, the analyst meant that the amount of BTC currently making profits is at a level similar to what it was during the early stages of the bull markets in 2012 and 2016.
BaroVirtual confirms that BTC’s profit range also remains within a tight range:
“At the same time, the long-term resistance of Bitcoin’s profit supply (%) corresponds to the range of 65.95-76.31…”
Source: CryptoQuant
What this means
This could mean that many people are holding on to the coins they bought at a lower price and waiting to sell them for a higher profit.
This could prevent BTC from breaking the bear market base as investors who are already making profits look to sell for more profits.
Read Bitcoin’s [BTC] price forecast 2023-24
For the coin’s price to grow, it needs to break the resistance range of 65.95-76.31. According to the analyst:
“Contradictory or uncertain Bitcoin price action is likely to be present until it successfully breaks the 65.95-76.31 resistance range. On the other hand, the above may indicate reaccumulation.”
This implies that BTC’s price direction may remain unclear until it crosses this resistance margin or until it undergoes a period of accumulation where investors buy more of the asset.
