Bitcoin’s price corrected over the past few days after hitting an all-time high well above the $60K mark. Now, a Bitcoin (BTC) analysis shows that it will probably take some time for it to move upward.
Bitcoin’s Most Recent Correction
After hitting an ATH at $61,781, Bitcoin’s price has started to retrace as it goes through a correction.
It started a couple of days back. As CryptoPotato reported then, over $2.2 billion, long positions were liquidated in less than 24 hours as Bitcoin dropped below $55,000. It has since attempted a recovery but has so far failed, and it continues to trade around that mark at the time of writing.
According to JP Morgan’s analysis, the most recent bitcoin (BTC) surge above $60K wasn’t caused by institutions but rather by individuals, which might also be part of the reasons for which it’s rather unsustainable.
In any case, the following areas of resistance, should the BTC price starts picking up some steam, would be around $58,300, $60,000, and then the current ATH level. On the flip side, if the price starts trending downwards, support can be expected around $54,500 and in the range between $53K and $52,340.
Recovery Might Be Slower
Amid all this, notable cryptocurrency analytics provider, CryptoQuant, believes that it might take some time for the price to recover and go through another leg up based on a few metrics.
Right off the bat, the current BTC holdings in USD are too many in comparison to stablecoin holdings on spot exchanges. This means that there’s currently not enough sidelined capital sitting on exchanges waiting for an entry.
As another reason, the analysts note that the “BTC market cap is too big to get another leg up by leveraging stablecoin market cap solely.”