Spot Selling and Price Rebound: How Bitcoin’s Market is Shaping Up

Highlighting the benefits of Bitcoin’s short-term holder realized price, prominent crypto trading platform Bitfinex has analyzed the current trend of the leading crypto asset, identifying key levels to watch that could signal whether the next phase for Bitcoin will be bullish or bearish.

In the Bitfinex Alpha Issue 126 report, a comprehensive analysis of Bitcoin’s performance over the past week was presented. The report revealed that the 11% drop BTC experienced last week was driven by aggressive spot selling, bringing Bitcoin’s value below $59K on October 10. According to the report, the selling pressure was most pronounced on the crypto exchange platform Coinbase, as indicated by the Premium Gap metric on the exchange.

Fast forward, Bitcoin’s price saw a rebound, pushing its value above $64K as the selling pressure among investors and traders eased.

The report highlights that $63K and $55K remain critical levels to watch. These two price points are key determinants for Bitcoin’s next market trend. A break below the $55K lower support level could signal a potential bear run, while a move above the $63K resistance level could put Bitcoin on a bullish rally in the upcoming phase.

The report advised traders to approach Bitcoin’s trend with caution and expect a potential price correction, all things being equal. However, a sustained break above the upper resistance level, combined with the underlying market resilience, could lead to a stronger recovery bounce for Bitcoin.

Currently, Bitcoin is priced above $65K. In the last 24 hours, Bitcoin has seen a significant price increase of more than 5%, moving from below $63K to over $65K, placing it above the key resistance level mentioned in the report as a breakout point. If the crypto asset behaves as predicted by the report, a bull run could be underway.