Bitcoin Surges Above $50,000, Faces Resistance
Bitcoin has surpassed $50,000 for the first time in over two years, breaking multiple resistance levels along the way. However, sustaining this level has proven challenging, as Bitcoin retraced to $49,800. There is a crucial resistance level that could induce selling pressure in the market.
Increased Profit-Taking by Investors
A prominent on-chain analytics platform revealed that around 375,000 addresses purchased 119.48K Bitcoin at an average price of $50,227.81. These addresses are currently at a loss and may generate selling pressure when they break even. This suggests that investors are taking profits following the recent surge.
Potential Selling Pressure Ahead
Over 800,000 addresses accumulated approximately 270,000 BTC when Bitcoin climbed above $48,491. However, the upward potential of Bitcoin is in jeopardy as investors show interest in cashing out their profits. Currently, 97.3% of Unspent Transaction Outputs (UTXO) are in a profitable state, indicating a potential selling pressure in the near future.
Institutional Demand for Bitcoin Soars
The Coinbase Advanced exchange noted a significant outflow of Bitcoin, suggesting that institutional investors are transferring their holdings away from the exchange instead of dumping them despite the market recovery. This trend highlights the growing demand for Bitcoin among institutional investors and reflects their regained confidence in the asset.
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