Support that fueled 2023 bull market triggers BTC price rebound

Bitcoin (
BTC
) could experience a relief from selling pressure as traders’ profit margins reach “basically zero,” according to analysis by Julio Moreno, head of research at on-chain analytics platform CryptoQuant. The recent drop in BTC price has punished Bitcoin and cryptocurrency traders, but there may be a turning point on the horizon. CryptoQuant data shows that traders have reached the breakeven point on their exchange holdings at $60,000, indicating a decline in selling pressure. The chart accompanying the analysis reveals that short-term holders of Bitcoin have exhausted profitable trades, suggesting that selling may decrease to avoid realizing losses. Historically, returns to short-term holders’ realized price have often marked market bottoms, and the trendline has consistently supported the market since the end of the 2022 bear market. Bitcoin experienced a tentative bounce on April 18, reaching $64,182, which some traders consider a potential buying opportunity. However, more evidence of spot demand is needed for a full recovery to be confirmed. It’s important to note that this article does not provide investment advice or recommendations, and readers should conduct their own research before making any decisions.