Bitcoin experienced a downturn at the start of Thursday”s Wall Street session, with traders focusing on critical support levels. The cryptocurrency”s price declined over 1% from the daily open, reaching a low of $95,563 on Bitstamp.
This recent weakness in BTC/USD comes as oil prices also saw a drop, diverging from gains in stocks and precious metals. The market reaction followed reports indicating a de-escalation of geopolitical tensions between the United States and Iran. Notably, President Trump communicated to Iran that he does not seek conflict, as stated by Iran”s ambassador to Pakistan.
Market participants are now looking towards essential price levels that need to be maintained amid a potential correction within the current uptrend. A notable voice in the community, Daan Crypto Trades, emphasized that it is crucial for bulls to sustain the $94,000 region. “Any moves back down that level would not make for a pretty look,” he remarked on social media.
Daan Crypto Trades also pointed to the 200-day exponential moving average (EMA), which stands at $99,555, as a significant indicator. Earlier commentary from Cointelegraph highlighted the bull market support band near $101,000, alongside the 50-week EMA, making these levels critical for traders.
The weekly closing target has been identified at $93,500, aligning with the 2025 yearly open, indicating areas of interest for future price movements. The current market conditions have prompted many Bitcoin speculators to take profits following the recent highs.
According to data from on-chain analytics provider CryptoQuant, newer investors, classified as short-term holders (STHs) who have held their assets for less than six months, have been incentivized to sell. In a 24-hour window, these investors transferred 40,000 BTC to exchanges, with approximately 37,800 BTC being sold at a profit compared to previous on-chain movements.
Darkfost, a contributor to CryptoQuant, noted that STHs are feeling the impact of the recent price correction. “More upside and stronger confirmation will be needed to rebuild confidence and generate enough unrealized profits to encourage them to hold rather than sell,” he explained in a recent blog post.
Additionally, separate analyses by CryptoQuant contributor Axel Adler Jr. revealed that the aggregate cost basis for the STH cohort is around $99,600, suggesting this area might serve as a potential resistance point moving forward.
This article serves to provide insights into the current state of the Bitcoin market and does not constitute investment advice. All trading carries risks, and individuals should conduct their own research before making investment decisions.
