Emily Walker
As market conditions evolve, Bitcoin has started to show positive signs, approaching key resistance points. However, the inherently unstable nature of cryptocurrencies suggests that this recent upward trend could face a temporary setback before continuing to rise.
Bitcoin’s Support Levels In Case of a Trend Shift
Cryptocurrency prices often exhibit sudden fluctuations. Alphractal, an advanced platform for investment and data analysis, points out significant on-chain metrics that indicate support levels for Bitcoin should its recent gains reverse.
Alphractal has identified these support levels as essential for assessing Bitcoin’s market resilience. One key metric is the Bitcoin Alpha Price, which has historically shown strong performance in identifying price trends and opportunities for Bitcoin.
The Alpha Price metric provides an innovative way to analyze price movements by comparing the profitability of Short-Term Holders versus Long-Term Holders against the wider market average. The highest line within the chart, which Bitcoin has seldom exceeded, indicates the Alpha Price. Meanwhile, the lower lines are derived from Fibonacci calculations based on this primary metric.
Currently, Alphractal observes that Bitcoin is hovering near the second upper limit, which has consistently restrained prices since December 2024. Should Bitcoin fail to sustain its recent upward momentum, significant support levels might establish around $84,700, $72,600, and $63,600. In such a scenario, the dynamics of short and long-term holders’ profitability are expected to shift, potentially alleviating selling pressures in the market.
It’s crucial to recognize that this data is continually updated based on daily on-chain activities. With Bitcoin showing signs of recovery following increased volatility, investors are vigilantly observing these levels for potential accumulation or stabilization opportunities.
Factors Driving Bitcoin’s Recent Upsurge
Bitcoin has successfully crossed critical thresholds, including the $100,000 level, sparking predictions of prolonged price appreciation. The market sentiment is increasingly optimistic about Bitcoin possibly revisiting its previous peak of $108,000 in the near future.
According to Santiment, this rally can be linked to two bullish developments in the U.S.: Donald Trump’s announcement regarding a pro-crypto agenda and favorable U.S. inflation reports.
According to Trump, his forthcoming administration plans to implement less strict SEC regulations. He emphasized a commitment to fostering clearer guidelines for tokens and removing legal barriers soon after he takes office next week.
Additionally, there is growing optimism about potential cuts to Federal Reserve interest rates, especially as U.S. inflation shows signs of decreasing, which would bolster the cryptocurrency sector. Traders also speculate that the Federal Reserve’s recent hawkish stance might lead to a minor adjustment in their future rate-cutting plans for 2025, despite having catalyzed a recent surge in crypto prices.