Bitcoin Price Analysis: Key Support Levels and Market Trends
Currently, Bitcoin is trading near critical support levels around $83,000, as investors exercise caution in the market. The asset has been repeatedly testing resistance levels at the top of a historical price channel.
Thin Bitcoin Supply Signals Limited Buying Activity
According to Glassnode data referenced by analyst Nic Puckrin, CEO of CoinBureau, Bitcoin’s supply remains notably thin in the $70,000 to $80,000 range. If prices dip into this range, the supply gap could indicate limited buying activity.
Potential Breakout or Consolidation for Bitcoin
My perspective aligns with the current scenario of Bitcoin probing the upper boundary of a historical price channel. This suggests that the asset is positioned for either a breakout or further consolidation. Signs of exhaustion at the channel’s top have been observed, indicating a potential consolidation phase.
Bitcoin is currently facing resistance in the $85,700 bracket, testing support levels at the top of the green channel below.
Bitcoin’s Relative Strength Against the Dollar
On a macro scale, Bitcoin has shown relative strength against the declining US Dollar Index (DXY). Despite recent price softness, Bitcoin’s performance remains robust compared to the weakening dollar.
Post-Halving Cycle Peak Prediction
Historically, post-halving cycle peaks occur approximately 500–600 days after halving events. The all-time high of Bitcoin at $109,300 around President Trump’s inauguration on Jan. 20 was followed by volatility spikes and liquidity sweeps. A retracement to $73,000, pre-election levels, could signal the completion of a cycle and shift focus to fundamentals and global perception.
Please note that the above insights are not financial advice. They are observations of potential catalysts and market trends that may influence Bitcoin’s price movements.
