Bitcoin, Why Couldn't It Break $80,000?

“Stopped at the threshold of $80,000”…The real reason why Bitcoin's rise was blocked has been revealed

▲ Bitcoin (BTC), Dollar (USD)/ChatGPT generated image ©

The reason why Bitcoin (BTC), which had been on an upward trend, failed to break $80,000 is analyzed to be due to the simultaneous action of on-chain structural resistance and overheated sentiment, rather than simple profit-taking.

According to the cryptocurrency media Bitcoinist on April 25 (local time), Bitcoin rebounded from below $74,000 at the beginning of the week, surpassing $79,000 on April 22 to record a three-month high. However, its upward momentum subsequently slowed, failing to break $80,000.

The biggest reason is the resistance from the on-chain indicator 'True Market Mean Price'. This indicator represents the average purchase price based on the actual circulating supply, excluding long-term unused coins and mining rewards, and acts as a psychological benchmark for market participants. This range has acted as a strong support level in the past, and it is analyzed that it now acts as strong resistance, limiting further increases.

Experts emphasize that even if this indicator is clearly broken, a confirmation period of at least three days is required. There is also a warning that if the breakout fails, a bearish trend could resume in the short term.

Investor sentiment also hindered the rise. According to Santiment, as Bitcoin approached $80,000, the market entered a state of excessive optimism, or FOMO (Fear Of Missing Out). This is generally interpreted as a short-term peak signal and indeed led to a slowdown in upward momentum.

Currently, Bitcoin is taking a breather, trading around $77,588, down 0.3% over a 24-hour period. It is observed that after a short-term correction to relieve overheating, the market is likely to attempt to break $80,000 once again if sentiment stabilizes.

*Disclaimer: This article is for investment reference only and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*