n a latest report by Glassnode, Bitcoin could go for a short term pull-back before resuming the upward trend towards $100,000, which is considered healthy for the overall market.
The Air Gap Phenomenon
The price of Bitcoin has surged quite quickly and has created a CME gap approximately between $78,000 and $82,000, which almost every time gets filled. This underdeveloped price range might witness the market attention in case of any pullbacks.
Market Consolidation Insights
The price action in the current period mirrors that of the rally in March which implies that price re-accumulation may be needed. This phase would assist to digest profit taking pressures, sustain the upward direction and accommodate supply reallocation. Such market behavior is expected in cases of the early development of a market and the formation of a price foundation.
Sell-Side Market Pressures
Market specialists have noticed some exciting patterns in sell-side activity. Sell-Side Risk Ratio is getting closer to high-value zone, and coins six to 12 months old dominate sell-side pressure. Most interesting, the profit taking is almost uniform across the different return brackets suggesting a deliberate exercise by investors who are looking at the performance of their respective stocks and avoiding speculation.
Navigating Market Uncertainties
Although Bitcoin is at an extra risk of short-term volatility, new market trends show incredible stability. The ability to take profits and hold shows that the investors are rational with their investments hence giving a mature approach to the investment market for cryptocurrencies.
