Bitcoin Needs to Break $60K Range to Ignite Market Activity, Says Analyst

In Brief:

Bitcoin's price consolidation around $60,000 is causing market stagnation, with analysts suggesting a breakout is needed to stimulate activity and market supply.

Long-term Bitcoin holders remain inactive, while short-term holders face unrealized losses, prompting analysts to anticipate a potential price movement soon.

‍

Bitcoin Price Must Leave $60K Range 'to Re-awaken Supply' — Market Analyst

‍

‍

Bitcoin's current price consolidation around the $60,000 mark has left investors in a state of inertia, with market analysts suggesting that a new price range is necessary to reinvigorate market activity. According to Glassnode lead analyst James Check, Bitcoin's sell-side risk ratio is entrenched in a low liquidity zone, indicating limited market movement.

‍

Check highlighted that most on-chain Bitcoin transactions are not locking in significant profits or losses. This inactivity is typical during periods of price consolidation, as seasoned traders await clearer signals before making moves.

‍

Long-term Holders Remain Dormant

‍

Long-term Bitcoin holders, those who have retained their assets for more than 155 days, are particularly inactive. These "old hands" are holding onto their coins, with volumes aged six months or more showing remarkable dormancy.

‍

‍

Conversely, short-term holders, who have held Bitcoin for less than 155 days, are experiencing unrealized losses, with the average purchase price for these investors at $62,426, according to Bitbo data. Bitcoin's current trading price is below this level, adding pressure on short-term holders.

‍

Potential for Breakout

‍

‍

Despite the current stagnation, several analysts are optimistic about a potential breakout from Bitcoin's consolidation range. Crypto trader Ash Crypto noted Bitcoin's breakout from a falling wedge pattern, suggesting the possibility of an upward price movement. Additionally, investor Mike Alfred described the current price action below $73,500 as "just noise," indicating potential for significant future price shifts.

‍