Bitcoin [BTC] has faced challenges in recent weeks with a lack of significant price increases.
Recent analysis has indicated a possible scenario where the coin could revisit the $85,000 price level in the short term.
Bitcoin Facing Challenges Ahead
Bitcoin’s price has been mostly stable in the last few days.
Over the past 24 hours, the leading cryptocurrency experienced a minor 0.5% increase, reaching $94,937.45 with a market cap exceeding $1.88 trillion.
Despite a decrease in price volatility, Alphractal, a renowned data analytics platform, highlighted a potential hurdle for Bitcoin’s future trajectory.
In a recent tweet, Alphractal referenced BTC’s Short-Term Holder Realized Price metric, which reflects the average purchase price of Bitcoin for investors categorized as short-term holders, typically based on coins held for less than 155 days.
The tweet emphasized,
“A drop below the $85,000 level could have severe repercussions on the price, potentially leading to a bear market. Thus, there will likely be strong resistance from the bulls to maintain the price between $85,000 and $86,000.”
Potential Revisit to $85,000 for BTC?
According to the Pi Cycle Top indicator, BTC recently approached a potential market low near the $78,000 range, signaling a potential retest of the $85,000 support level.
Furthermore, there has been an increase in selling pressure on Bitcoin.
A recent report by CryptoCrypto highlighted a notable uptick in BTC’s spot exchange reserves after a consistent decline over the past month, indicating 20,000 BTC inflows.
An uptick in this metric implies investors are offloading their holdings, typically leading to downward pressure on prices. Concerns were also raised in the derivatives market.
Based on CryptoQuant’s data, Bitcoin’s taker buy/sell ratio shifted to favor selling sentiment in the futures market.