U.Today – The price of (BTC), the largest cryptocurrency by market capitalization, is approaching a critical test as it approaches a key resistance level.
Market speculation is running high, with traders and investors closely monitoring Bitcoin price movements, anticipating possible advances or setbacks in the coming days.
After experiencing significant volatility over the past few weeks, the Bitcoin price is showing signs of stabilizing, although a bigger test for its price action is on the horizon. In this regard, market analysts have identified several key resistance levels that Bitcoin must overcome in order to maintain its bullish momentum.
After falling to lows of $54,278 in Monday’s trading session, Bitcoin experienced a rebound that brought it closer to a crucial resistance level that could determine its near-term trajectory.
According to cryptocurrency analyst Benjamin Cowen, “Short-term resistance for BTC is around $59,000. This is the 200-day simple moving average (SMA) and would also correspond to a backtest of the trendline from which BTC broke.”
After rising for two days in a row, Bitcoin retested the daily 200 SMA and briefly surpassed it, hitting highs of $59,341 in today's trading session.
At the time of writing, BTC was up just 0.83% over the past 24 hours, giving back its intraday gains as bulls confirmed resistance near the daily 200 SMA.
Short-term Bitcoin holders underwater
According to Glassnode, Bitcoin has seen its steepest drop since late 2022, trading below the 200-day simple moving average (DMA) and causing a significant number of short-term holders to suffer unrealized losses.
As spot prices fall, the ratio of realized gains to realized losses for investors falls along with them. According to Glassnode, this indicator has now fallen to the 0.50 to 0.75 region, a more neutral level typically seen during bull market declines.
Focusing specifically on short-term holder losses, Glassnode reported a total realized loss of over $595 million this week, the largest loss-taking event since the 2022 cycle low. Furthermore, only 52 out of 5,655 trading days (less than 1%) had a higher daily loss value, indicating the severity of the drop in dollar terms.
This article was originally published on U.Today
