Bitcoin (BTC) continues to showcase a bullish market structure, despite a recent retest of the $60,000 support level. Popular trader and analyst Rekt Capital has downplayed the prevailing fearful market sentiment surrounding the current BTC price fluctuations, highlighting that Bitcoin's movement back to the $60,000 territory should not be a reason for alarm. The BTC/USD trading pair encountered a 6% decline over the last three days, following a brief peak that surpassed the $66,000 mark.
Rekt Capital observed that Bitcoin has revisited the low $60,000 range multiple times in recent months, with each retracement met with various narratives creating fear among traders. Nevertheless, he asserts that the underlying bullish market structure remains robust. Moreover, fellow trader Jelle echoes this positive sentiment, asserting that Bitcoin appears to be transforming significant resistance levels into support.
Jelle reassured his followers that, even with a red start to the quarter, Bitcoin's market structure is fundamentally bullish, and critical support levels are being solidified. In contrast to the optimistic outlook from these analysts, various bearish BTC price predictions have circulated in recent discussions.
Some analysts have forecasted the possibility of Bitcoin dropping below the $60,000 mark. Entrepreneur Mark Cullen recommended that traders brace themselves for a potential dip toward $57,000, suggesting that Bitcoin could still face downward pressure. Onchain data analysis by Checkmate, a pseudonymous creator associated with Checkonchain, provides deeper insights into the current market trends.
By examining the short-term holder spent output profit ratio (STH-SOPR) metric, Checkmate noted that the recent performance in Bitcoin's price is influenced by profit-taking activity among speculators. The STH-SOPR metric, which assesses the ratio of funds in profit when moved on-chain, has recently fallen below its midpoint value of 1.0.
This shift indicates a potential 'buy the dip' opportunity for savvy investors. Checkmate elaborated that a high STH-SOPR level signifies profit-taking and selling pressure; however, dips nearing the 1.0 value or brief undercuts within a bullish market can present compelling opportunities for accumulating Bitcoin at reduced prices. Investors should note that this article is not intended as investment advice or recommendations.
Each investment and trading decision carries inherent risks, and individuals are encouraged to conduct thorough research before making any decisions..