BTC Price: Is Bitcoin in a Bull Run or a Trap for Investors?

Following the Federal Reserve’s interest rate decision, Bitcoin’s price showed a notable short-term recovery as it successfully surpassed the $29,000 resistance zone. Despite recent fluctuations, several analysts remain optimistic about Bitcoin’s long-term prospects, asserting that it is still in a bull market. This sentiment is supported by the fact that many long-term holders of Bitcoin are still holding positions that are currently profitable. 

According to Ali Martinez, despite Bitcoin dropping below $30,000, the Adjusted SOPR indicates that most BTC sellers are still making profits. It’s similar to selling items purchased at a discount.

Taking to his Twitter handle, he wrote, “Even though #Bitcoin fell below $30,000, the Adjusted SOPR suggests that many of those who are selling $BTC are still in profit. Think of it like people selling items they bought at a discount. Don’t let short-term price action blur the bigger picture.”

According to Daan Crypto, Bitcoin is experiencing its lengthiest period at or below the Weekly 200 Moving Average. The previous record was set in 2015, lasting approximately 9 months. However, the current situation has surpassed that, with Bitcoin staying below the Weekly 200MA for over 13 months now. This extended duration could have significant implications for the cryptocurrency’s price and market sentiment.

Credible Crypto said, “We’ve been repeating the exact same pattern with every single accumulation/consolidation structure since our bottom at 15k. It’s almost time for the next impulse.”

Ki Young Ju, the co-founder of Cryptoquant, believes that Bitcoin is still in a bull cycle. One of the indicators supporting this view is that approximately 71% of the realized capitalization of Bitcoin has remained unmoved for over 6 months. This data suggests that long-term holders are holding onto their Bitcoin, resulting in low selling pressure in the market at present.