BTC price finds support from the catalyst that sparked the bull market of 2023 and rebounds.

Bitcoin (BTC) could potentially experience a respite from selling pressure as traders’ profit margins reach “basically zero,” according to an analysis by Julio Moreno, the head of research at on-chain analytics platform CryptoQuant. Despite a week of price drops for BTC, traders have now reached a breakeven point on their exchange holdings at $60,000. This suggests that the selling pressure from traders may decrease as unrealized profit margins dwindle. Short-term holders of Bitcoin, who have owned BTC for 155 days or less, have exhausted profitable trades, indicating a potential decrease in selling to avoid losses. Historically, returns to the realized price for short-term holders have often marked market bottoms, providing support to the market since the end of the 2022 bear market. While BTC has experienced a temporary dip below $60,000 since its retracement from all-time highs in March, it has largely remained above the short-term holders’ realized price. On April 18, BTC saw a relief bounce, reaching $64,182 on Bitstamp. However, further evidence of spot demand is needed for a full recovery. This article is not intended as investment advice and readers should conduct their own research before making investment decisions.