Bitcoin (BTC) Market Records Important Shift, Establishing a New Technical High by Reaching the $66,000 Zone

The Bitcoin market has recorded an important shift, establishing a new technical high by reaching the $66,000 zone. This is key for the recovery of the digital asset.

Bitcoin price reached the $66,000 level again, recording an important technical peak. This peak, which is critical for the recovery of the digital asset, is notable for Bitcoin reaching a higher level for the first time since its all-time high. The rise in prices is also supported by a number of on-chain metrics reaching record highs, making this period of particular interest to analysts.

Looking at Bitcoin's price performance from the bottom of the bear cycle shows surprising similarities with previous cycles. Although there are significantly different market conditions in each cycle, BTC's trajectory follows a comparable pattern.

This situation is due to a number of factors that can affect the direction of the market. On the one hand, there is an increase in the amount of coins from long-term holders who are at losses, especially those purchased near the all-time high of $73,000. However, the magnitude of these losses is relatively small, indicating that the financial pressure on investors is not significant.

The Essential Role of Bitcoin ETFs

On the other hand, short-term holders' profitability improved significantly during the recent rally, providing relief for those who purchased BTC in the short term. The increase in profitability of new investors shows that confidence in the market is increasing again, although many are still in a loss position relative to entry costs.

Investors' faith in Bitcoin exchange-traded funds (ETFs) also remained high. Although ETFs were in an average loss position, selling pressure remained minimal. Currently, assets under management in US BTC ETFs reach a value of approximately $58 billion, accounting for approximately 4.6% of the circulating BTC supply. Strong institutional interest is critical to strengthen market stability and provide a solid foundation for future growth.

Bitcoin Heads for Recovery

Analysis of Bitcoin supply also reveals a change in the dynamics between long-term and short-term holders. Currently G.4 of out-of-loss BTC belongs to long-term holders, but the size of their losses is modest, meaning they are under less financial pressure. This trend is also seen in the supply among short-term holders, where more than b of the coins are in a profitable position.

Bitcoin rally has not only pushed the asset to a new technical high, but also increased investor profitability and reduced overall financial pressure. While showing signs of accumulation in a solid institutional base and behavioral pattern of holders, Bitcoin's future points to a sustained and sustainable recovery in the market.

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