Bitcoin traders stress ‘bullish’ market while BTC price threatens $60K
2024.10.03 06:06
Bitcoin still has a “bullish market structure” after another retest of $60,000 support, analysis indicates.
Trader and analyst Rekt Capital dismissed “fearful” market sentiment over current (BTC) price action in one of his latest updates on X.
BTC price support faces “different narrative”
Rekt Capital said that Bitcoin is no stranger to $60,000 as a fundamental psychological level, and returning to test it from above is no reason for cold feet.
BTC/USD has dropped by about 6% over the past three days, previously hitting two-month highs above $66,000, per data from Cointelegraph Markets Pro and TradingView.
BTC/USD 1-hour chart. Source: TradingView
“BTC has revisited the low $60,000s countless times over the past several months,” the X post said.
“And yet people become equally fearful on a pullback and for a different reason every time. Same price. Different narrative. Never a loss in bullish market structure.”
Rekt Capital is not alone in this confident sentiment. Fellow trader Jelle said that BTC/USD is still undergoing a more substantial resistance/support (R/S) flip.
“A bit of red to start the quarter, and everyone is in full-on PTSD mode,” he told X followers.
“Meanwhile, Bitcoin’s market structure is bullish again, and we’re turning key S/R back into support. Don’t get shaken out.”
BTC/USD chart. Source: Jelle/X
Previously, Cointelegraph reported on various bearish BTC price predictions calling for a drop of up to 10% — or more — below $60,000 should it give way.
Entrepreneur and crypto enthusiast Mark Cullen joined that camp on Oct. 3, advising traders to prepare for a potential dip to around $57,000.
“It’s taking time, but Bitcoin still appears to be heading lower,” an X post concluded.
BTC/USD chart. Source: Mark Cullen/X
Bitcoin short-term holder metric hits “stack” zone
Analyzing onchain data, meanwhile, Checkmate, the pseudonymous creator of data resource Checkonchain, viewed recent price performance through the lens of profit-taking by Bitcoin speculators.
Related: 3 signs that Bitcoin’s Q3 close was bullish
This was conducted using the short-term holder spent output profit ratio (STH-SOPR) metric, which analyzes the proportion of funds in profit when moved onchain by speculators. Such entities are those hodling the funds involved for up to 155 days.
STH-SOPR has dipped below its center 1.0 value, arguably setting up a viable “buy the dip” opportunity.
“If Bitcoin STH-SOPR is high… don’t buy, it means folks are taking profit and applying sell-side,” Checkmate said.
“Conversely, in a bull market, dips back to 1.0, or preferably short sharp undercuts of it are opportunities to stack the cheapest sats.”
Bitcoin STH-SOPR chart. Source: Checkmate/X
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research before making a decision.
