Bitcoin (BTC) regained the crucial $60,000 support level in a show of resilience after bears attempted to wipe out $59,000 lows set in March, based on CryptoSlate data.
The leading cryptocurrency is trading at $60,800 at press time, after falling more than 5% to around $59,100 on April 30 when New York closed trading.
The broader cryptocurrency market also saw significant losses on the day, with most major caps falling between 5% and 10%.
At press time, Ethereum (ETH) is trading at $3022 after falling to a low of $2919, while BNB is trading around $580 after recovering from a low of $555.
Solana (SOL) experienced an even more dramatic 9% drop to $121 before recovering to $128 as of press time.
End of euphoria phase
Bitcoin’s recent “euphoria phase” is showing signs of cooling, potentially signaling that the cryptocurrency’s price is nearing a bottom, according to a Glassnode report on April 30.
After surging to an all-time high of $73,000 in early March, Bitcoin has experienced a significant pullback and its current price has consolidated between $60,000 and $67,500. The recent decline is part of a broader “net redistribution” phase following the flagship cryptocurrency’s halving bounce.
Glassnode’s analysis shows that the cooling phase is mainly driven by new investors taking profits and contributing to sell-side pressure.
The market intelligence company utilized cumulative trend scores to study Bitcoin price movement patterns and observed similarities with previous bull markets.
The company also highlighted that geopolitical tensions in the Middle East and the introduction of spot Bitcoin ETFs in the US in January had an impact on Bitcoin prices.
In particular, the Net Unrealized Profits and Losses (NUPL) indicator, which measures net profits or losses normalized to market capitalization, has been above 0.5 for the past seven months, indicating a sustained euphoric phase.
cautiously optimistic
Despite the current recession, Glassnode suggests the market may be approaching 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, a key figure that closely matches losses realized since mid-March.
The market outlook remains cautiously optimistic as Bitcoin maintains its position above the core price of $60,000. However, if Bitcoin fails to sustain above $60,000, market sentiment is clearly bearish in the near term.
Meanwhile, future economic data, regulatory developments, and geopolitical climate changes are expected to play a significant role in shaping the direction of Bitcoin and the broader cryptocurrency market.