Bitcoin’s recent price movements have sparked cautious interest among dip buyers, as the cryptocurrency hovers near its range lows. Despite reaching a new all-time high in realized market cap, investor sentiment remains subdued, with many waiting for the $90,000 mark to establish itself as a solid support level before making significant moves.
Key Takeaways
- Bitcoin’s realized market cap hits $872 billion, but growth rate slows to 0.9% month-over-month.
- Short-term holders are currently at a loss, with the realized price at $91,600.
- Diverging sentiment between US and Korean traders affects Bitcoin’s price action.
- Bitcoin oscillates between $85,440 and $82,750, with key moving averages providing resistance.
Market Sentiment and Realized Cap
Bitcoin’s realized market cap recently reached an impressive $872 billion, marking a significant milestone for the cryptocurrency. However, data from analytics platform Glassnode indicates a lack of enthusiasm among investors, as the monthly growth rate of the realized cap has dropped to just 0.9%. This decline suggests a risk-off sentiment prevailing in the market, with fewer new investors entering and existing holders showing reduced activity.
The realized cap reflects the total value of all Bitcoin at the price they last moved, providing insight into the actual capital invested in the cryptocurrency. A slowing growth rate indicates that while the capital inflow remains positive, it is diminishing, which could lead to a consolidation phase as the market seeks a new equilibrium.
Short-Term Holder Dynamics
Current data from CryptoQuant reveals that the short-term holder’s realized price stands at $91,600. With Bitcoin trading below this threshold, many short-term holders find themselves underwater, potentially increasing selling pressure as they may opt to sell to cut losses. This situation is further complicated by the short-term holder market value to realized value ratio, which remains below 1, historically a signal for buying opportunities, indicating that many short-term holders are currently at a loss.
Diverging Trading Sentiments
Recent trading data highlights a divergence in sentiment between Bitcoin traders in the United States and those in Korea. The Coinbase premium, which reflects US trading activity, has recently spiked, indicating strong demand from American traders. In contrast, the Kimchi premium index has fallen, suggesting a lack of retail engagement among Korean traders. This disparity in demand is evident in Bitcoin’s price action, which has been oscillating between a tight range of $85,440 and $82,750 since April 11.
Price Action and Moving Averages
On the 4-hour chart, Bitcoin has managed to retain support from the 50-day, 100-day, and 200-day moving averages. However, on the 1-day chart, these indicators are presenting resistance to a bullish structure, complicating the outlook for potential upward movement. As Bitcoin continues to navigate this tight range, many investors are closely monitoring the $90,000 level, hoping it will solidify as a support point before committing to larger investments.
In conclusion, while dip buyers are cautiously entering the market, the prevailing risk-off sentiment and the current price dynamics suggest that many are waiting for clearer signals before making significant moves. The next few weeks will be crucial in determining whether Bitcoin can establish a solid support level at $90,000, which could pave the way for renewed bullish momentum.
