NAIROBI (Coinchapter.com) – Bitcoin’s unwavering momentum has captured the attention of crypto enthusiasts as the price of the leading digital asset triumphantly rebounds from a critical support level. this has ignited a renewed sense of optimism within the market.
In a remarkable display of resilience, the Bitcoin price has defied expectations by rebounding from the Average Short-Term Realized Price (STH realized price) of $58,500, a crucial support level that has historically served as a formidable barrier. This pivotal move has reignited the interest of investors and traders alike, fueling speculation about the potential for a sustained bull run.
BTC Demand Subdued, but Whales Remain Steadfast
According to the latest CryptoQuant weekly report, the decrease in Bitcoin demand is evident in low whale demand, fewer purchases from spot exchange-traded funds (ETFs) in the United States, and the Coinbase premium falling below zero. However, despite these indicators, the unwavering commitment of large investors and whales has been a stabilizing force.
Julio Moreno, the head of research at CryptoQuant, revealed that while the total balance of Bitcoin at over-the-counter (OTC) desks hit its highest level since November 2022, suggesting a potential oversupply, whales and institutional investors have continued to accumulate the digital asset.
Miner Selling Adds to Short-Term Supply Glut
One factor contributing to the temporary imbalance between supply and demand is the increased selling activity from miners. Since the halving event on April 19, which reduced the block rewards by 50%, miners’ revenue has decreased significantly. To sustain operations, many mining entities have resorted to selling their Bitcoin holdings, creating an oversupply in the market.
While this short-term selling pressure may exert downward force on prices, analysts believe that the long-term fundamentals remain intact. Julio Moreno noted,
“For the price to increase meaningfully, we may need to see these balances declining again, indicating a restoration of demand-supply equilibrium.”
Bitcoin Price Rebounds
On May 4th, Bitcoin traded at around $63,727 and has gained over 3% in the past 24 hours. While this rebound offers some short-term relief, market indicators suggest more turbulence could be on the horizon. The next key resistance level lies around $68,000. A sustained break above this price point could signal a further push towards the all-time high of $73,797, reached in March 2024.
However, the declining demand and increasing miner selling pressure raise concerns about Bitcoin’s near-term price trajectory. If the current support levels fail to hold, BTC could revisit the $55,000-$57,000 range.
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