Bitrabo Editorial
Bitcoin has shown resilience recently, recovering nearly 30% after dropping to about $49,000 in early August. Although the price is still below $65,000, the current trends suggest a strengthening bullish momentum as various fundamental factors align in favor of the leading cryptocurrency. Analyzing the daily chart, this response level matches with the peak prices from August.
If buyers can gain enough momentum to surpass the $65,000 mark, Bitcoin could potentially rise to $70,000, a key psychological threshold, and even surpass $72,000. This would represent the first time since June that bullish activity has successfully breached this resistance level.
Bitcoin’s Rise Amid Easing Selling Pressure: The Challenge of Surpassing $65,000
The struggle for buyers to break through the $65,000 barrier occurs despite on-chain data indicating a decrease in selling momentum. Following market fears in early September, many traders have shifted their focus to buying long positions and minimizing losses.
One analyst on X highlighted a significant decline in BTC sales at a loss over the past week. The Bitcoin realized cap suggests that losses for traders dipped from over $5 million to approximately $4.7 million. According to the analyst, this trend shows that many sellers are opting not to unload their coins at a loss, which could lay the groundwork for further gains in price.
Currently, the primary resistance level appears to be $65,000; however, bulls have struggled to break past this liquidation threshold even with strong confidence.
Bitcoin’s Sharpe Ratio at 11.8% Points to Potential Growth
As selling pressure dissipates, the same analyst noted that the Bitcoin Sharpe ratio is currently around 11.8%. This ratio is used by on-chain analysts to evaluate risk-adjusted returns in comparison to U.S. treasuries.
This ratio indicates that Bitcoin holders have seen better returns over the past year compared to bond investors. In general, a Bitcoin Sharpe ratio approaching 20% suggests a market peak. Therefore, with the current ratio at 11.8%, it implies that there remains potential for growth before reaching speculative heights.