Bitcoin (BTC) has regained the crucial support level at $60,000 in a show of resilience after bears attempted to break the March low at $59,000, based on data from CryptoSlate.
The flagship crypto was trading at $60,800 at the time of writing, after falling more than 5% to around $59,100 on April 30, as New York closed the trading day.
The broader crypto market also saw significant losses that day, with most major caps down between 5% and 10%.
At the time of writing, Ethereum (ETH) was trading at $3022 after falling to a low of $2919, while BNB was trading around $580 after recovering from a low of $555.
Solana (SOL) had a more dramatic drop of 9% to a low of $121 before recovering to $128 at the time of writing.
End of the euphoria phase
Bitcoin’s latest “euphoria phase” is showing signs of cooling off, possibly signaling an impending bottom for the cryptocurrency’s price, according to an April 30 Glassnode report. report.
After rising to an all-time high of $73,000 in early March, Bitcoin has experienced a significant pullback, with prices now consolidating between $60,000 and $67,500. The latest pullback is part of a broader phase of “net redistribution” following the flagship crypto’s post-halving rally.
Glassnode’s analysis found that the cool-down phase is largely driven by newer investors taking profits and adding to the sell-side pressure.
The market intelligence firm used its Accumulation Trend Score to study patterns in Bitcoin’s price movements and observe similarities to previous bull markets.
The company also highlighted the impact of geopolitical tensions in the Middle East and the introduction of spot Bitcoin ETFs in the US in January – both of which have affected Bitcoin’s price.
Notably, the Net Unrealized Profit and Loss (NUPL) measure, which measures net paper gains or losses normalized by market capitalization, has been above 0.5 for the past seven months, indicating a sustained euphoria phase.
Cautiously optimistic
Despite the current downturn, Glassnode suggests the market may be approaching a point of seller exhaustion, especially among short-term holders who have dominated recent sales.
The cost basis of investors holding Bitcoin for a week to a month now stands at $66,700, a key figure as it closely tracks their realized losses since mid-March.
With Bitcoin maintaining its position above the key price of $60,000, the market outlook remains cautiously optimistic. However, market sentiment is decidedly bearish in the short term if Bitcoin fails to stay above $60,000.
Meanwhile, future economic data, regulatory developments, and changes in the geopolitical environment are expected to play a key role in shaping the direction of Bitcoin and the broader crypto market.