Bitcoin, the leading cryptocurrency, rose above $63,000 as it tried to recover after June, which had sharp and sudden declines.
While investors who have been struggling with the decline for a long time expect the rise to continue, analysts pointed out the potential resistance in front of BTC.
At this point, Blockware Intelligence analysts, who discussed the trends of short-term investors, said that short-term investors are now facing losses.
He said this group of investors has two options: “They may not sell even though they are at a loss, or they may sell at a loss.”
According to analysts, if this group of investors chooses to sell, there may be a selling pressure around $65,000 in Bitcoin price.
Analysts stated that they expect the rise in Bitcoin to continue, but the price may encounter resistance at $65,000:
“Bitcoin price fell below short-term investors' total cost basis for the first time since August 2023.
Considering that short-term investors may turn to shorts in Bitcoin, we should expect some resistance near $65,000 in the short term.
So short-term investors may now face losses. At this point, they can keep their positions in the red, that is, at a loss, or exit the market with a loss. This could potentially increase selling pressure around $65,000.”
Referring to the summer of 2023, analysts said that when Bitcoin lost the price support level that occurred last summer, the price moved horizontally for another two months but eventually started to rise again.
These Drops in Bitcoin Are Healthy!
Finally, analysts stated that the decline experienced by Bitcoin since its ATH of over $ 73,000 in March is significant for a short-term investor, but is a normal bull market correction for the long-term investor and said:
“During the 2017 cycle, BTC had 10 declines of 20% or more. This is a normal, healthy, bull market correction.
“Bitcoin's price volatility shakes off weak hands and provides opportunities for strategic capital deployment to those with a longer-term time horizon.”
*This is not investment advice.