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With shifting market dynamics, Bitcoin has moved into positive territory as prices sights key resistance levels. However, due to the volatile nature of crypto assets, the flagship asset’s recent uptrend might experience a brief drawback before resuming its upward direction.
Support Areas For Bitcoin Amid Potential Trend Reversal
Cryptocurrency assets are known for their sudden change in price trajectory. Thus Alphractal, an advanced investment and data analysis platform, highlights a crucial on-chain metric that reveals important support levels that Bitcoin may rely on if its recent uptrend falters.
Alphractal identifies these levels as important benchmarks that may determine the sustainability of BTC’s overall market strength. This key measure is the Bitcoin Alpha Price metric, an indicator that has shown remarkable accuracy in identifying and forecasting opportunities and BTC’s price movements in the past.
The Alpha Price metric offers a groundbreaking method of assessing price dynamics by comparing the profitability of Short-Term Holders and Long-Term Holders to the average price of the general market. Looking at the chart, the highest line, which Bitcoin has rarely surpassed in the past, marks the Alpha Price. Meanwhile, the bottom lines are Fibonacci-based factors obtained from the primary metric.
Bitcoin Alpha Price metric showing key support levels | Source: Alphractal on X
Currently, Alphractal noted that Bitcoin has reached the second upper line, which has continuously stopped the price from breaking above it since December 2024. In the event that the BTC does not maintain its renewed upward trajectory, critical support levels will be formed at $84,700, $72,600, and $63,600. Under such circumstances, the profitability of short-term solders and long-term holders is expected to adapt, and the market will no longer be under selling pressure.
It is important to note that these data are dynamic since the value varies daily based on the on-chain activity. With Bitcoin’s price now recovering after witnessing increased volatility, investors are carefully monitoring these zones as possible points for accumulation or stabilization.
Factors Bolstering BTC’s Current Upward Trajectory
Bitcoin has reclaimed critical pivotal levels such as the $100,000 mark, sparking speculations about an extended price growth. Given the strong rebound, the community is optimistic about the asset revisiting its current all-time high of $108,000 shortly.
According to Santiment, this upsurge is attributed to two US-based bullish news such as Donald Trump’s announcement of his pro-crypto strategy and US Inflation reports.
Donald Trump has announced that his incoming administration intends to enact more lenient SEC regulations. He has underscored his commitment to ushering in more transparent token guidelines and removing legal constraints following his inauguration next week.
Also, optimism is rising about additional Fed rate cuts as US inflation reports show cooling inflation, which would immediately support the crypto cryptocurrencies. Meanwhile, traders hope that the hawkish FOMC meeting last month will slightly alter their decisions on slowing rate cuts in 2025, even though it helped push cryptos to their highest level.
Featured image from Unsplash, chart from Tradingview.com
