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Bitcoin Price Fails To Secure $88,000, But BTC is Far From Capitulation

2 mins
Updated by Harsh Notariya
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In Brief

  • Bitcoin’s price struggles below $85,000, with a 5-month low in circulation indicating investor caution.
  • Despite a dip in market sentiment after Trump’s tariffs, long-term holders show strong conviction, signaling optimism.
  • Bitcoin must reclaim $85,000 as support to recover recent losses, with $80,301 as the next key support level if bearish pressure continues.
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Bitcoin’s price has been on a steady downtrend since the end of February, consistently struggling to break above the $85,000 mark. 

While recent price action shows Bitcoin holding steady under this critical level, key investors remain undeterred. Despite the struggle, many continue to HODL, signaling long-term confidence.

Bitcoin Investors Are Optimistic

Bitcoin’s velocity, which measures the circulation of the cryptocurrency, dipped to a five-month low last week. This decline in velocity indicates that Bitcoin holders are becoming more cautious, with fewer coins being transacted. As circulation decreases, it often leads to subdued price growth, and BTC has experienced this trend recently. 

The reduced velocity reflects a shift in investor sentiment, with a general sense of hesitation among market participants. As a result, Bitcoin’s price recovery has been sluggish, and this cautious approach is reflected in current market behavior.

Bitcoin Velocity
Bitcoin Velocity. Source: Glassnode

In contrast to the cautious short-term sentiment, mid-term holders (3-6 month holders) have seen an increase in wealth during this period. These holders are transitioning into long-term holders (LTHs), showing a shift in investor confidence. Many of these coins were acquired near Bitcoin’s all-time highs, and their continued aging suggests strong conviction among these investors. 

Spending from this cohort has reached its lowest levels since mid-2021, indicating that long-term holders are less likely to sell, even during periods of market uncertainty. This reduced selling pressure is a positive sign, as it suggests that key investors are committed to holding their positions and are not capitulating to market downturns.

Bitcoin MTH Wealth Held
Bitcoin MTH Wealth Held. Source: Glassnode

Can BTC Price Recover Recent Losses?

At the time of writing, Bitcoin’s price stands at $83,403, sitting just below the crucial $85,000 resistance. Earlier this week, Bitcoin surged to $88,500 but experienced a decline after Trump’s Liberation Day tariffs were announced. This caused a temporary dip in market sentiment, but the price has stabilized above $80,000.

Looking ahead, Bitcoin could recover if support from long-term holders continues. However, for this to occur, $85,000 must first be reclaimed as support. A confirmed recovery would be marked by Bitcoin pushing past $89,800, signaling a potential path toward higher levels.

Bitcoin Price Analysis.
Bitcoin Price Analysis. Source: TradingView

If the breach of $85,000 fails and circulation remains low, Bitcoin’s price could fall back to the next key support level at $80,301. Such a decline would invalidate the bullish outlook and could lead to further consolidation or bearish price action in the short term.

Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

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Aaryamann Shrivastava
Aaryamann Shrivastava is a technical and on-chain analyst at BeInCrypto, where he specializes in market reports on cryptocurrencies from diverse sectors, including Telegram Apps, liquid staking, Layer 1s, meme coins, artificial intelligence (AI), metaverse, internet of things (IoT), Ethereum ecosystem, and Bitcoin. Previously, he conducted market analysis and technical assessments of various altcoins at FXStreet and AMBCrypto, covering all aspects of the crypto industry, including...
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