Bitcoin Turned into Support Resistance Line: Analyst Assessment

Recently, the price of Bitcoin has undergone a significant change that has caught the attention of investors. Analyst Maartunn noted that Bitcoin has entered the fourth phase of its short-term investment cycle, emphasizing that the support level has now turned into a resistance position.

On-chain data shows that the Realized Price level, which reflects the average cost for short-term investors, is currently above the price, rather than below it. This situation indicates that the level, which previously functioned as a strong support, will now face resistance. Upon examining the charts, it is seen that this phase in past cycles usually represents a period when investors complete their profit sales and lose their buying appetite. Maartunn expressed concerns about Bitcoin's ability to remain at this level, stating, "Each test weakens the conviction a bit more."

From the perspective of short-term investors, the average cost for this group is currently around $111,000. This level has begun to emerge as a significant line of resistance in the market. As long as the Bitcoin price remains below this level, a "wait-and-see" atmosphere is expected to persist in the market. Further pressure from short-term investors could alter market dynamics and affect price movements.

In conclusion, critical points that Bitcoin investors need to pay attention to include the transformation of the support level into resistance and the possibility of the market adopting a sideways movement if it remains below the $111,000 level. Investors should continue to closely monitor price movements and support/resistance levels.