Bitcoin is firm, adding nearly 30% after sinking to as low as $49,000 in early August. As bulls strengthen and fundamental factors swing in favor of the world’s most valuable coin, prices remain below $65,000. Looking at the daily chart, this reaction level coincides with August highs.
Technically, if buyers find the required momentum, breaking above this level, it could soar to as high as $70,000, a psychological level, and even break $72,000. If this happens, it will mark the first time since June that bulls have overcome the resistance at their reaction level.
Bitcoin Rising As Selling Pressure Drops, Why Is $65,000 Hard To Break?
The inability of buyers to ease past $65,000 comes when on-chain data shows that sellers are losing momentum. After fears in early September, the bounce higher to spot rates has seen traders change strategy, focusing on longs and cutting losses.
According to one analyst on X, pointing to trading data, there has been a notable drop in BTC sales at a loss over the past week of trading. The Bitcoin realized cap shows that traders losing money over the last week dipped below $5 million to $4.7 million.
This means that most sellers are no longer willing to see their coins at a loss. Subsequently, the drop in selling pressure should, in theory, prop up bulls, setting the foundation for even more gains.
The immediate resistance level, looking at the candlestick arrangement in the daily chart, is $65,000. However, the problem is that bulls have been unable to break through this liquidation level despite the high confidence.
Bitcoin Sharpe Ratio At 11.8%, There Is More Room For Growth
As selling pressure wanes, the analyst also noted that the Bitcoin Sharpe ratio is around 11.8%. On-chain analysts use the ratio to gauge risk-adjusted returns relative to the United States treasuries.
At those levels, it means BTC holders, over the last year, have been in the money, earning more than bondholders.
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Typically, whenever the Bitcoin Sharpe ratio rises to around 20%, it signals a market top. Since the ratio is at 11.8%, it signals that there is more room for growth before hitting the speculative peak.
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