The leading cryptocurrency, Bitcoin (BTC), rose as Asian stock markets opened, climbing above $79,000.
Bitcoin once again approached the $80,000 mark, but the rally stalled at $80,000 as last-minute buyers sold at the break-even point.
According to analysts, Bitcoin is facing significant selling pressure around the $80,000 level, which is considered the break-even point for recent buyers.
Despite a 16% increase in April and strong institutional accumulation, Bitcoin reached a 12-week high, surpassing $79,300 overnight during Asian trading hours before pulling back today.
However, a sharp pullback subsequently brought the price back to the $77,600 level. This retracement once again thwarted Bitcoin’s attempt to regain the $80,000 level, a feat it has attempted since January.
This rise occurred amid uncertainty surrounding the US-Iran conflict and the Strait of Hormuz issue, and was partly driven by news that Iran had presented a new offer to the US to reopen the Strait of Hormuz. The reopening of the Strait of Hormuz and a potential agreement between the two countries increased risk appetite among investors.
However, this rise was short-lived. According to analysts, this pullback is due to profit-taking by short-term investors.
$80,000 is Critical in Bitcoin’s Rise!
At this point, it is being noted that the $80,000 level could be a short-term turning point in the market.
BTC Markets analyst Rachael Lucas explained that the $80,000 level is where the last buyers reached the entry price. She noted that this has historically been a point of selling pressure, where investors who have been in losing positions for weeks try to exit the market.
“$80,000 is near the break-even point for recent buyers, and it’s a point where profit-taking selling pressure could emerge.”
Besides Lucas, LVRG Research Director Nick Ruck also commented on the recent movements in Bitcoin.
Ruck stated, “If spot demand continues to increase, the recent uptrend could extend further, but investors are primarily watching whether BTC can remain above the $80,000 to $83,000 region. At this point, investors are also monitoring the Fed’s interest rate decision on April 29th and other key economic data releases.”
*This is not investment advice.