Cryptocurrency has become an incredibly powerful force in modern finance and technology, with Bitcoin (BTC) being one of the most influential. BTC has had a positive start to the year, ranking as the best-performing asset class for Q1 2023, rising to over $28,000 from just $25,000. However, BTC appears to have reached a roadblock and stalled at the $28,000 mark, as both long-term holders and whales have started to take profits.

On-chain data has revealed a concerning trend of rising Age Consumed, which looks at the amount of days since coins were last moved around. This can indicate that long-term holders are selling their coins, which could cause an oversupply in the market and lead to a price correction.

Another bearish factor is the decreasing number of large Bitcoin transactions, as it suggests a dearth in demand from large investors. This could cause a mild-liquidity squeeze and lead to a short-term price downswing.

The bulls may face a tough climb and may experience further retracement as BTC attempts to break above the $30,000 milestone. Resistance is particularly strong at the $28,500 area, where 1.37 million addresses are taking profits on their 821,000 coins. If this persists, BTC may find support at $26,800. Conversely, if the bulls remain resilient, they can push BTC to the $30,000 mark with the greatest ease if they can break the $28,700 resistance.

Though the coming weeks may be tough, BTC will likely remain one of the most influential and desired assets around, especially as the market landscape continues to evolve with new funds and players entering the cryptocurrency space.



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