The Bitfinex Alpha analysis report has revealed that Bitcoin’s recent decline was primarily driven by significant spot selling, resulting in a drop of over 11% from its September high. However, the selling pressure has since eased, and the cryptocurrency has shown signs of recovery.
The report highlighted the importance of the realized price of Bitcoin short-term holders, which currently stands near $65,000. If Bitcoin can successfully break above this level, it could signal further bullish momentum. Conversely, failure to break through this resistance may lead to a retest of lower support levels, potentially around $59,000 or even $55,000.
Despite the easing selling pressure, the report noted that the market remains in a passive state. The future direction of Bitcoin’s price will depend on whether it can decisively surpass the realized price of short-term holders. Until then, traders should be prepared for potential pullbacks but also be aware of the possibility of strong rebounds from lower levels due to the market’s resilience.
Moreover, the extension of the repayment period for creditors by the Mt.Gox trustee has eased concerns about a potential sell-off in Bitcoin. Many investors were worried that creditors might liquidate part of the 44,900 BTC to be distributed, which could have put pressure on Bitcoin prices. The delay in repayments has helped alleviate these concerns.
