Bitcoin Could Unlock New Local Highs If This Happens – CryptoQuant

This week, bitcoin (BTC) touched a price high of $64,000 before retracing its steps to a current price mark below $62,000. This downward trend in prices begs the question: Will the leading crypto asset unlock new highs in the near term?

A CryptoQuant analyst has shared research that shows what could allow the leading crypto asset to maintain its current price range and even unlock higher levels.

Bitcoin at a critical psychological tipping point

Historically, market participants have become pessimistic when their BTC holdings have experienced losses following a sharp price drop. Conversely, investors are bullish when their BTC portfolio is in the green zone.

The CryptoQuant analyst stressed that the leading cryptocurrency is currently between a “critical psychological turning point and a zone of optimism,” a stage where the psychology of market participants can boost or sink bitcoin’s movement. Underscoring the need for BTC to remain in the bullish zone, the analyst wrote:

“Historical data shows that maintaining stability in these critical areas is crucial to the continuation of bull markets. Specifically, the ‘Bid at Profit’ metric, which reflects the period in which investors are profitable, indicates that optimism tends to rise when a significant portion of the supply is profitable. Bitcoin’s current price levels are testing this zone of optimism.”

During past market cycles, bitcoin remained stable between these two zones, the analyst noted, leading to continued upward price trends. The CryptoQuant expert added that as long as BTC remains in its bullish zone, its price could rise to new local highs.

Will BTC continue to be bullish?

Although bitcoin advocates are hoping for an uptrend in the market, BTC may not live up to its much-anticipated growth. Here’s why.

There is talk that the US government plans to sell 69,370 BTC worth approximately $4.3 billion seized from the Silk Road dark web marketplace. If the government executes its plan, it could trigger a bearish trend for the bitcoin market, as seen with Germany’s BTC sales earlier this year.

US stockbroker Peter Schiff suggested MicroStrategy’s Michael Saylor stepped in to acquire bitcoin storage to prevent the asset’s price from facing a severe bloodbath.

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