Bitcoin Reclaims $70,000 Support Amid Market Caution
- Bitcoin’s sell-side liquidity has surged, with ask orders hitting a two-month high of $1.57 billion.
- Sell orders exceed demand by approximately 40% within a 5% price band, indicating heavy supply above the current market price.
- The average acquisition price for short-term holders is around $88,900, with significant supply clustered between $86,000 and $99,000.
- Last week saw realized losses of about $611 million against profits of $346 million, resulting in a net loss of $264 million.
- The current price level remains significantly below the main short-term cost-basis cluster, limiting breakeven selling during rallies.
As Bitcoin maintains its position above $70,000, the market remains cautious due to high sell-side liquidity and underwater positions among short-term holders. The balance between selling pressure and support levels will be crucial in determining future price movements.
With Bitcoin’s average holder cost basis at approximately $88,900 and significant supply concentrated between $86,000 and $99,000, any upward movement may face challenges from profit-taking.(Source)
