Bitcoin (BTC) showed resilience and regained the key $60,000 support level after bears attempted to break out of the $59,000 low set in March, based on CryptoSlate data. .
The flagship cryptocurrency was trading at $60,800 at press time, after falling more than 5% to about $59,100 on April 30, when the trading day ended in New York.
The broader crypto market also experienced significant losses on the day, with most major caps falling between 5% and 10%.
At the time of writing, Ethereum (ETH) is trading at $3,022 after falling to a low of $2,919, while BNB is trading around $580 after recovering from a low of $555.
Solana (SOL) experienced an even more dramatic 9% decline, hitting a low of $121, but has recovered to $128 at press time.
End of euphoria phase
Bitcoin’s latest “euphoric phase” is showing signs of subsiding, according to a Glassnode report on April 30th, which could signal that the crypto price is nearing its bottom. It is said that there is.
After soaring to an all-time high of $73,000 in early March, Bitcoin has experienced a significant decline, with prices currently settling between $60,000 and $67,500. The decline is part of a broader “net redistribution” phase following the rise in leading cryptocurrencies following their halving.
According to Glassnode analysis, the cooling phase is mainly driven by new investors, who are locking in profits and contributing to sell-side pressure.
The market intelligence firm utilized cumulative trend scores to study patterns in Bitcoin's price movements and observed similarities with previous bull markets.
The company also highlighted the impact of geopolitical tensions in the Middle East and the introduction of a Spot Bitcoin ETF in the United States in January, both of which are impacting Bitcoin prices.
Notably, the Net Unrealized Gain and Loss (NUPL) indicator, which measures paper profit or loss normalized by market capitalization, has been above 0.5 for the past seven months, indicating a sustained stage of euphoria.
cautiously optimistic
Despite the current economic downturn, Glassnode suggests the market may be nearing a point of seller exhaustion, especially among short-term holders who have dominated recent selling.
The cost basis for investors who held Bitcoin for a week to a month is now $66,700, which is important because it roughly matches the realized losses since mid-March. There is.
Bitcoin remains above the key price point of $60,000, and the market outlook remains cautiously optimistic. However, if Bitcoin fails to sustain above $60,000, market sentiment will be clearly bearish in the short term.
Meanwhile, future economic data, regulatory trends, and changes in the geopolitical climate are expected to play a key role in shaping the direction of Bitcoin and the broader crypto market.
