The sharp declines in the cryptocurrency market in recent days have brought Bitcoin’s critical support levels back into focus. Axel Adler Jr., an analyst at the on-chain data platform CryptoQuant, noted in his assessment of Bitcoin’s current outlook that selling pressure is steadily increasing.
According to the analyst, Bitcoin is currently approaching the lows seen in February, around $62,000. Looking at the data from the last seven days, the net loss has reached $7 billion. This figure exceeds the losses recorded at the February lows, but remains below the $14 billion peak seen last winter, a period described as a “period of capitulation” in the markets.
Adler points to a key difference that distinguishes the current market cycle from previous corrections. While in previous downturns selling pressure tended to weaken as prices approached their lows, this time, conversely, selling pressure increased as prices declined. This is seen as a significant signal indicating a continued deterioration in investor sentiment.
According to the analyst’s data, the Bitcoin price has fallen below approximately $76,000, which is the average cost level for short-term investors. This development indicates that a large portion of short-term investors have moved into the loss zone.
Currently, there are two key support levels in the market. The first is around $54,000, considered the average cost floor for the entire network. The second support point is the $49,000 region, where the average cost for long-term investors is located.
According to Adler, as long as Bitcoin remains above the $54,000 level, the market hasn’t yet fully entered a capitulation phase. However, he notes that if the price falls below the February lows, selling pressure could accelerate, pushing Bitcoin back towards the $54,000 network cost floor. Therefore, the analyst identifies the $54,000 level as the last critical line of defense for the bulls.
This is not investment advice.
Continue Reading: Selling Pressure is Increasing in Bitcoin! Here Are the Next Key Support Levels According to Analysts!