Bitcoin’s price has been declining since February, struggling to exceed $85,000. Despite diminished transaction velocity and hesitancy among short-term investors, long-term holders are maintaining their positions. Current price stands at $83,403, with a need to reclaim $85,000 for recovery to occur. Failure to do so may lead to lower support levels being tested.

Bitcoin’s price trajectory has exhibited a steady decline since the end of February, with the cryptocurrency consistently unable to surpass the $85,000 threshold. Although recent market movements reveal Bitcoin maintaining stability below this significant level, key investors remain resolute, continuing to “HODL” as an expression of their long-term confidence in the asset.

Recent analysis indicates that Bitcoin’s velocity, which assesses the circulation rate of the cryptocurrency, dropped to a five-month low last week, reflecting a more cautious approach among holders. This decline signifies that fewer transactions are occurring as holders exhibit hesitancy, resulting in subdued price growth for Bitcoin throughout this period. A shift in investor sentiment is evident, leading to sluggish price recovery despite earlier increases.

Conversely, mid-term holders (those retaining Bitcoin for 3-6 months) have experienced an increase in wealth during the same timeframe. Some of these investors are transitioning into long-term holders, accumulating confidence as they retain coins purchased during Bitcoin’s all-time highs. The sustained aging of these holdings implies substantial conviction among long-term investors.

Current spending from this investor group has reached its lowest point since mid-2021, indicating a reluctance to sell amidst market uncertainty. This trend serves as a promising indicator, as it implies vital investors are committed to their positions and are resisting market capitulation.

As of the latest updates, Bitcoin’s price is recorded at $83,403, situated just below the key resistance level of $85,000. Earlier, Bitcoin surged to a price of $88,500, but a subsequent decline occurred following the announcement of President Trump’s Liberation Day tariffs, affecting market sentiment. The price has since stabilized above $80,000.

Looking ahead, a potential recovery in Bitcoin’s price hinges upon sustained support from long-term holders. For this recovery to materialize, reclaiming $85,000 as support is essential. A confirmed upward trajectory would necessitate Bitcoin surpassing $89,800, which may indicate a pathway towards higher price levels. Conversely, should Bitcoin fail to breach the $85,000 mark and circulation remains low, there exists a risk of a decline towards the next support level at $80,301, possibly undermining bullish expectations and leading to further consolidation or bearish movements in the near term.

In conclusion, Bitcoin’s price remains under pressure, struggling to maintain levels above $85,000 amid diminished transaction velocity and cautious investor sentiment. Despite short-term hesitance, long-term holders exhibit strong commitment, contributing to a potential path for recovery if key resistance levels are restored. However, failure to reclaim these levels could lead to further price consolidation and bearish trends.

Original Source: beincrypto.com

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