Bitcoin has entered a crucial “anxiety region” as it approaches the $93,500 mark, according to analysts at cryptocurrency research firm Alphractal. The firm’s proprietary “STH & LTH Sentiment Price Bands” indicator, which tracks the combined profitability and loss of short-term holders (STH) and long-term holders (LTH), suggests that Bitcoin’s price is currently testing a historically significant resistance zone.
Alphractal explains that previous Bitcoin bull cycles in 2013, 2017, and 2020 witnessed breakouts from this “anxiety band,” leading to substantial price surges. If Bitcoin follows a similar pattern, the firm anticipates a move towards higher price bands.
Based on the 2021 bull run, a breakout could propel Bitcoin’s price above $142,200, pushing both STHs and LTHs into a “thrill sentiment” zone. A more dramatic scenario, mirroring the intensity of the 2017 bull market, could see Bitcoin reaching targets above $233,800.
However, the key to unlocking these potential gains lies in Bitcoin’s ability to decisively break through the current $93,500 resistance level. Alphractal highlights the next target as the “Optimism Band,” currently situated at $115,600. Significantly, the firm notes that in past bull cycles, Bitcoin’s price never consolidated within the Optimism Band but instead surpassed it, suggesting that this level could become a future resistance zone.
Alphractal emphasizes the innovative nature of its STH & LTH Sentiment Price Bands indicator, which provides a dynamic measure of market sentiment by considering the behavior of all investors.
