Over the past week, Bitcoin has seen a modest gain of 0.95%, hinting at considerable market consolidation. The leading cryptocurrency is finding it difficult to breach the $85,000-$86,000 price bracket following a significant price surge in mid-April. Ali Martinez, a renowned crypto analyst, has pinpointed a significant resistance level that could hinder Bitcoin’s current upward trend.
In a recent update, Martinez notes that Bitcoin may encounter a major resistance at around $91,275 after a price rebound in early April. Remarkably, Bitcoin’s value increased by 17.33% after hitting a low of $75,000 on April 9. Post this achievement, Bitcoin has been stuck in a consolidation phase, with no major price shifts in either direction.
Over the past week, Bitcoin’s value oscillated between $84,000 to $86,000, encapsulating a tightly bound market. Amidst these hurdles, Martinez highlights that the realized price for Bitcoin’s short-term holders stands at $91,275, which suggests a critical resistance level to the recent market recovery.
For clarity, the realized price of short-term holders is the average price at which the new Bitcoin investors over the past 155 days have purchased their Bitcoin. This is a vital technical indicator for assessing short-term market sentiment and actions.
If the market price surpasses the short-term holders’ realized price, it signifies bullish momentum as recent buyers are in profit and likely to hold. In such a scenario, the short-term holders’ realized price acts as a strong support level, with new market participants often defending their entry point.
However, when Bitcoin’s price is below the short-term holders’ realized price, as seen currently, this realized price becomes a significant psychological price barrier. This is because many short-term holders may opt to exit once the market reaches break-even, intensifying the selling pressure around that zone.
Therefore, it is crucial for Bitcoin to reclaim the $91,275 mark to confirm sufficient bullish strength for a complete price reversal. At the time of writing, Bitcoin is trading at $84,872, reflecting a daily price growth of 0.14%. Meanwhile, the leading cryptocurrency is down by 1.34% on its monthly chart as the bearish pressure begins to dissipate.
While a significant market resistance is at $91,000, Bitcoin is facing immediate opposition at the $86,000 price zone. Breaking past this could trigger a sharp price increase to $91,000. However, a price drop below the support level of $84,500 could lead to a further price decrease to $84,000, possibly even as low as $83,300.
